Archive for the 'Investors/Landlords' Category
Updating a Rental Apartment’s Bathroom With Style
December 4th, 2008 categories: Investors/Landlords
When updating a rental apartment, you have to balance a few things: budget, quality, quick turnaround and marketability. Landlords have a hard time with this. The approach many take is to forget quality and focus on the budget. Personally, I think you can achieve all of the above - budget, quality, quick turnaround and marketability - with style.
Here’s how I did just that last month when I remodeled a bathroom in a rental. As you can see from the before pictures, it was definitely time.
Before the Bathroom Remodel
Challenges
Spend Maximum of $3,000 on labor and materials
Complete Within One Month (in-between tenants)
Don’t Make it Look Like an Apartment
Keep it Neutral
Make it Last - high quality materials that last mean I have less down time
How I Did It
Free Demo- My husband did the demo work for me. He found that some of the sheetrock around the shower had to be replaced and that we needed to add insulation. In addition, the subfloor had to be replaced.
Kept Old Cast Iron Tub and Radiator - both in good condition and make the bathroom blend with 1920s style of the apartment
Kept Existing Light Fixture, Mirror (repainted with a silver metallic paint) and shower fixture (which was replaced last year)
Replaced Toilet- went with a Kohler toilet on advice of plumber (new technology almost guarantees you won’t have to call a plumber to fix a clogged toilet) for $197.00
Replaced Sink - to add some storage and some color, went with a combination sink and vanity - a steal at $169.00
Replaced Sink Fixture - went with a Delta faucet - $89.00
Replaced Floor Tile - Used a high quality porcelain tile at $5.24/sf, 12×12 with limestone look.
Replaced Wall Tile - Used a 3×6 subway tile at $2.75/sf in Biscuit Beige. Subway tile keeps with style of house and is not typical in rentals.
Repainted Ceiling
After the Bathroom Remodel Photos
Did I Meet My Goals?
The bathroom cost $3,400including labor and materials, which I attribute to some repair work (replacing sheetrock and subfloor) I wasn’t counting on.
I did save money by not having to repaint the walls, not replacing the bathtub, bath fixtures or light, and by reusing the mirror.
I splurged on the tile but for a small area, the extra cost didn’t hurt too much.
The bathroom was completed right on time, thanks to my contractor. No, you can’t have his number:)
And the apartment was rented!
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Connecticut Cities Avoid List of Forbes Next Foreclosure Capitals
October 20th, 2008 categories: Home Buyers, Home Sellers, Investors/Landlords, Real Estate Market
Forbes.com just released their predictions for the next round of cities to be hardest hit by foreclosures. Move over Stockton - hello, Jacksonville.
The good news is that no city in Connecticut is on the list - the bad news is that such a list exists.
The cities named are:
1. Jacksonville, FL
2. Fresno, CA
3. Naples, FL
4. Miami, FL
5. Orlando, FL
6. Santa Cruz, CA
7. Merced, CA
8. Oxnard, CA
9. Deltona, FL
10. Santa Barbara, CA
RealtyTrac.com ranks the Top 100 metro areas for foreclosures in the 2nd quarter of 2008 as New Haven/Milford rank #57, Stamford/Norwalk/Bridgeport is #64 and Hartford is #74.
For August of 2008, CT ranks as the 17th top (worst) state for foreclosures.
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HUD Homes For Sale in Hartford County
August 28th, 2008 categories: Home Buyers, Investors/Landlords
There are a number of HUD properties for sale right now in Hartford County.
HUD owned homes are those that the Department of Housing and Urban Development foreclosed on after an owner defaulted on an FHA-insured loan.
Any HUD registered broker can show you a HUD listing (My office is a registered broker and therefore I have access to these listings). You do not have to contact the listing agent directly.
Here are some of the properties:
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Do You Trust Franklin to Choose Your Tenants For You?
July 30th, 2008 categories: Home Buyers, Investors/Landlords
This is based on a true story. The names have been changed to protect the guilty.
Meet Franklin
My client is looking to purchase a vacant two-family to live in.
Franklin is an “experienced” landlord with property for sale in Connecticut. Franklin has hired a reputable real estate firm to represent him in the sale of his two family, which he and the firm have advertised as being “vacant.”
I called to make an appointment to see the house and was told that there was a tenant in one of the units. I call the listing agent to verify this and to make sure that the tenant is month-to-month since my client is buying the house to live in it and rent out the other unit to tenants they’ve selected.
The listing agent assures me that the tenant is “family” and month-to-month.
My client writes up an offer. After some negotiation, everyone agrees on the terms but I was faxed back the contract with the most important clause of the contract scratched out - “Property to be vacant at closing time.”
Two weeks and 20 phone calls later, we slowly unravel that either Franklin lied to his agent or the listing agent lied to me. The property has a tenant with a lease - which won’t be up for 7 months. On top of it, the tenant is on some type of state assistance and has claimed an “attachment” to the apartment so the owner can’t force the tenant to leave now, soon or possibly ever.
All along, I advised my client that it’s not a good idea to inherit someone else’s tenants because you don’t know the previous owner’s standards.
For fun, I thought we could imagine Franklin’s tenant screening methodology.
Franklin’s Tenant Screening Process
Step One: Put Out a For Rent Sign
Qualified tenants are always just out walking around, looking for signs.
Step Two: Phone Interview with the Applicants to Pre-qualify
Forget employment status and credit history. Potential tenants score points if they have a sob story. See photo of my daughter who knows how to put on a sad face.
Franklin would rent her an apartment today.
Step Three: Show the Apartment
Hey, if they saw the ad on-line, who needs to see it in person. Congratulations! The lease is in the mail.
Step Four: Sign the Lease
Even if it’s on a napkin, it’s binding.
The Problem with Inheriting Tenants
It’s hard enough to choose qualified tenants without adding a middleman - the former owner who you don’t know. Before you buy a multi-family, make sure the tenants are on a month-to-month lease so you, not Franklin, can make the decision. Year leases must be honored by the new owner.
And in case you forgot about the problems tenants can cause, here are some good old fashioned tenant horror stories.
http://news14.com/content/top_stories/597845/man-charged-with-killing-landlord/Default.aspx
http://realestate.msn.com/Rentals/Article2.aspx?cp-documentid=4972876>1=35000
For related stories:
Deadbeat Tenants Win The Day in This Eviction Video
Really, Really, Really Bad Tenants
Even More Really, Really, Really Bad Tenants
Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.
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The Secret to Buying Real Estate for Profit is Starbucks?
July 9th, 2008 categories: Investors/Landlords, Real Estate Market
I came across this article in Newsweek via Sellsius - The Starbucks Effect.
If future Starbucks locations herald a boom in local real estate values, the news isn’t great in CT. The only Starbucks planned is in Bethel, CT. But if you’re planning on buying real estate on Long Island - do so now - there are several stores in the works.
Check out the Starbucks store locator.
Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.
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