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Yikes! All Things Investment Property....Help this First Timer!

6 years ago

I am looking at an investment property that I will probably sell in the spring, and I would like to hear/discuss your strategies for best return of investment. I am calling this is a "post war 60s ranch over basement" home in an excellent neighborhood zoned for good schools, on a nice corner double lot, but it clearly needs a lot of updating. So, think original vintage 1961 kitchen, with the bathtub you can imagine.

So, yep, lets talk about all things Investment Property and help me stay focused on the goal here...which is to SELL. Not improve like I will be living there.


Here she is ...in all her glory. The exterior is actually white brick on bottom with white shingles. (Not sure why my picture is so cream looking, it is definitely white) So, I would love to hear your thoughts beginning with the exterior. The front door is a full light french door with a glass security door.

(6) Mimi Tucker · More Info


Thank you in advance.

Comments (108)

  • PRO
    6 years ago

    D2G I saw this rug for your daughter's living room the other day and have been so darn busy I haven't had time to post it. Have you seen this one? Trying to post. grrr

    Design2 girl thanked Flo Mangan
  • PRO
    6 years ago

    rug

    Area Rugs · More Info


    Area Rugs · More Info


    Design2 girl thanked Flo Mangan
  • 6 years ago

    Here is a little house ,with beautifully refinished floors ,that recently went pending in two days. Huge appeal for buyers because the entire interior was painted with either a crisp Behr Ultre White, no tint, or SW Zurich White. Another nice neutral ( not too gray, not too yellow ) off white is BM Calm . It is another off white that still shows a hint of color, but is much lighter than “the neutrals “. See photos - a very clean, fresh look , I think. Also, when staging , some live greenery with this all white look never hurts, imo. , even if there is no furniture .

    Design2 girl thanked niccidhg
  • 6 years ago

    I generally agree with most of what's already been said here. I'm not a flipper myself but I have a few buddies who do it for a living and it's no small task. Poor decisions can result in thousands of dollars lost. Landscape, paint, clean, and de-clutter. Leave the rest.

  • 6 years ago

    Yesterday, I had another paint quote on this little house. Geez, he was more than double the first guy. And this is why I get 3 quotes for most everything. How ridiculous, and he thought I wouldn't be aware of current pricing.


    Flo, thanks for the rug...I assure you, I am about done with looking for Emily's rug, she needs to love whatever she chooses because trying them out is wearing me out. LOL! And, I am trying to stay focused on this project.


    Homechef, you are soooooo right! As far as an appraisal, we did have an "investor" make an offer (which I refused) but I am giving the family member the price they requested which is greater than half of the offer, and we are settling at the end of the month. All parties are willing and able and now, the cleaning out of contents and moving items is happening. We kept it simple and I will be managing all the issues, legal, repairs, etc.

    But, I am seriously taking all these comments to heart, because my goal here is to sell it and recoup my costs and I have decided that I absolutely do not want to be a landlord.


    And, yes, the landscape needs attention, and powerwashing, cleaning and removing junk is at the top of the priority list.


    As far as what I would Want to do....you are right...those projects always seem to snowball and I'm sure it would be easy to get in over my head on this deal. But, would you leave flowery wallpaper???? I think it is a huge turn off to most potential buyers. I am inclined to want to paint, and Niccodhg....I love those pics of the house you posted! Just gorgeous. I really like the white and bright look. I am really debating about stripping that wallpaper which is of the devil or allowing the painter to spackle the seams and use Kilz over it before painting it. If anybody has experience with this, would love to hear your opinions. I'm sure this is the one issue that is going to be a headache. What do you think is the best method?


    As I have been researching authentic 1960 historic colors by SW, I am looking at Classic Light Buff SW 0050 with SW Pure White trim and cabinets, since the cabinets are already white. But, do you think a starker white would be better? The home faces west and gets afternoon light in the big picture window on the front.


    Sherwin Williams Classic Light Buff (0050) – Samplize · More Info


    The popcorn ceilings are remaining but will be lightly sprayed clean fresh white.


    Getting the insurance is proving to be a PITA because most companies don't like vacant homes. Ugh. Any thoughts on that issue here? I am waiting on the second quote for homeowners insurance.



  • 6 years ago
    last modified: 6 years ago

    How much paper and how long has it been up there and who installed and who is removing ...naw,do the KILZ and spray the paint. I never paint anything too,too white in an older house because it can highlight every imperfection while also risks looking dingy,cold and sterile. I would want a slight contrast between the wall colour and the trim (same shade,different sheen often works) with a bit more contrast between the kitchen cabs and the kitchen walls. Are you still painting the cabs? Also, my selling a house mojo/voodoo is painting the master a pale but discernable blue and sticking a rosemary plant somewhere inside :-)

    Design2 girl thanked hollybar
  • 6 years ago

    Perhaps you'll have better luck than I did, but as I mentioned in a previous comment, the end date of my deceased mother's homeowner's insurance policy was our main issue. Fortunately, we had about nine months before the policy ended.

    We checked with three companies (my mother's, my sibling's and mine) and none would insure an unoccupied home even with a security system already in place (my sibling and I only lived 15 minutes away and were in and out almost daily). This was an all brick/slate roof home in an affluent zip code with little, if any, crime, but there must be other parameters that impact the insurance companies' decision to refuse to insure.

    Thankfully, we completed the very time-intensive clean out, arranged for minimal handyman type repairs and it went under contract/sold with time to spare. Ongoing utility and misc home and community bills also were a catalyst to get the home sold as quickly as possible too besides the looming insurance deadline.

    Design2 girl thanked tlynn1960
  • 6 years ago

    Lots of progress, good for you. Alas, I don't think there's any magic white or off-white shade that ensures a quick sale. There are regional preferences for particular off white shades, probably having a lot to do with being available as a ready-mixed (not custom) color that you can pop in and buy without waiting to have it mixed. In my area's biggest paint chain, the most popular off whites are Cottage White and Swiss Coffee.


    You could get an estimate from a professional wallpaper remover. Some wallpapers have been installed over layer after layer of other painted wallpaper and when you remove much of it, you find the decades-old plaster surface is being held together by the paper. I've had no qualms about spackling the seams and painting over wallpaper in a normal house (not historic landmark).

    Design2 girl thanked apple_pie_order
  • 6 years ago

    Okay, first good news of the day, My insurance guy just called back with a reasonable quote for replacement coverage that includes indoor water damage as well as a second quote for rental liability that was less coverage, but would probably get the job done. I am inclined to go with the full replacement policy since it will just be short term. So, at least it is going to be available.

    It is my understanding that the current homeowners insurance will be stopped as soon as the deed is fully transferred my way, so this issue is really of the essence to me. Check.


    And, second good news of the day, my electrician stated that the fuse panel, while older and not the current panel of choice, is certainly still in use in many homes in this area, and he ventured to state that I probably don't have to rewire this entire house. So, for now, nope, not planning to rewire if there is not any issues with it.


    In addition, I located all the recent HVAC paperwork with the date it was replaced in 2017. The roof was replaced 7 years ago. All the pipes were changed to PVC as well, so I hope I am covered on the big stuff.


    The SW manager here recommended a very lightweight wall spackle that is not too heavy or wet over the seams of the wallpaper, then Kilz, then proceed. I think the key is not too much weight on these vintage walls/ceilings. Makes me nervous, but not as nervous as starting to strip it and getting into major sheet rock repairs. Ugh.


    Here is just a snippet of the small master bathroom that has the original small square tiles and it was treated with the DIY Rustoleum Tile Transformation about 2 years ago, and I think in here, maybe a new brightened up shower curtain and I considered painting the walls SW Glimmer, to give it a freshened up look. All fixtures, flooring stays in place.






    I'm thinking maybe Glimmer, which is just a very light color, but it works with so much. Not nearly as saturated as Sea Salt.



    Aqua was definitely a vintage 60s color and this gives a hint of that while still being a bit modern. And the bathroom needs something to liven it up, don't you think?

    Interested in all ideas.



  • 6 years ago
    last modified: 6 years ago

    No need to buy a shower curtain, just take the old one away. Buyers want to see the condition of the shower. The light green paint is pretty. A cream color is another option, just a shade more intense than the shower surface. Fill the holes in the tile above the sink. Remove the lace curtains or wash them and rehang them if the window needs privacy.

    Design2 girl thanked apple_pie_order
  • 6 years ago

    Have you talked to at least 3 realtors yet? You could save yourself a heck of a lot of trouble if you that first.

  • 6 years ago

    You can find a color described as high hiding white, usually with the premixed contractor paint. Another good premixed choice is Navaho White, very light, slightly yellow color. Especially for ceilings, you can go cheap paint as the flat paint.

    My usual is after ceilings are painted, I pour off some paint for touchup (not a problem anyway since I used premixed flat that I can purchase at any time) and use the rest for wall paint. My favorite color for this...best one I find at ReStore or oops counter combined with enough white paint to get a light result. If you find a dark blue, green,or gray paint, be careful as it doesn't take much to put some color in white. I usually try for a light green or blue, failing that something around the color of oatmeal.

    Wallpaper...ugh! Sometimes it comes off easily but that isn't going to be obvious until you try. If it is paper, try a small space and see if it comes off easy, otherwise paint. If it is vinyl, see if the front will pull off leaving the paper backing. At that point, you can test removal, then prime with oil and fix the walls. If you prime with waterbase, it will soak into the paper and bubble up and make it tough to get a decent looking surface. I recently took off a small section of wallpaper and it was super easy but it often takes more work. In any case, you must wash the wall extremely well to remove the glue before painting unless you prune with oil

  • 6 years ago

    Be honest with the insurance agent and read the policy carefully . Most homeowner's policies have exclusions and occupancy, or true intent to occupy, may be in that list. When we left our house vacant for a long time, we had to switch to vacant property coverage which was about double the money and provided half the coverage. Just because you have a one year policy does not mean that you have coverage for that time if you don't maintain any required residency. Hopefully that won't end up being an issue for you!

  • 6 years ago

    I just got the first reference back on realtor #1 that I interviewed. I am working on the realtor thing and on Tuesday, I will be having a discussion with the Title Company people and getting their recommendations as well.


    And, yes, Lyndee Lee, I am going to read the exact policy requirements as well as the coverages, I meant to pick it up today, so probably Monday on that. It was a phone call and I agree, I need to read all that fine, tiny, teeny-weeny print!

  • 6 years ago

    I had a mid century modest house with original bathrooms and kitchen and I loved it and was so happy it had not been done over. Lots of young people today like that mid century homey style.

    Design2 girl thanked Ellen Tracy
  • PRO
    6 years ago

    Some great advice here D2G

  • PRO
    6 years ago

    Look into Results MLS out of middle TN. We used them 7 years ago when we sold our house. We’ve had several friends use them with success. Basically you’re buying an MLS listing from them. In the price you get to post photos up to a certain number, you get a yard sign, and a lock box for the door, and your listing goes in the MLS as well as on several realtor websites. You are acting as the seller’s realtor. The buyer’s realtor shows the house (via lockbox key) so you don’t have to be there. You’re plugged in to a website and get feedback after every showing. You can pay an extra fee to have the Results MLS realtor handle negotiations when an offer comes in. We handled it ourselves. By using this company we paid 3% commission plus the small fee to buy the listing, instead of the usual 6%.

    Design2 girl thanked Window Accents by Vanessa Downs
  • 6 years ago

    has anyone suggested a raised porch across the right side of the front? I know you all have moved on from that probably too late.

    but here I go anyway lol


    Design2 girl thanked RL Relocation LLC
  • 6 years ago

    Wow, I really love that idea as it would solve a myriad of issues, namely the drainage from the gutter on the right, the aging concrete, incorporating additional landscaping under the tree that refuses grass, as well as giving some great front porch hanging out space. Thank you for the rendition. I'm probably too cheap to execute it. Love the thought though.

  • 6 years ago

    Here's my visualisation..... just include in your imagination black shutters!

    Design2 girl thanked kazzh
  • 6 years ago

    .

  • 6 years ago

    Resist. Resist. Resist.

    It's good to have a list of major improvements. All mechanicals in working order.

    Leave the wall paper as is. That's a time sucker with little reward. Paint will be a time and money sucker, too.

    Anything that you do will just be done again. You will be selling to someone who wants to renovate or use it as a rental. All you need to provide is clean, cleared out, mowed, trimmed, and a good power wash.

    Everything else is up to the new buyer.

    Design2 girl thanked homechef59
  • 6 years ago

    Use a realtor. They handle so much. We just sold a two-unit building and the realtor handled everything! Coordinated showings, reviewed 8 offers, 14 showings, sales contracts, etc. he was worth the price. He also took fabulous pictures!

  • 6 years ago

    Following

  • 6 years ago

    (Window Accents by) Vanessa, I am reading ResultsMLS.com and it sounds very organized and impressive. The reviews are positive and it may just be the right fit for this situation. I like the idea of a lockbox and they provide professional photography as well. Looking to see if Cleveland is an option, I am thinking so but I want to make sure.

  • 6 years ago

    A massive Walnut Tree...right in the way of the house. Oh, the horror.

    i am thinking, that as long as *cost* is the Only determinant of what to do or not, that basically, we all lose.


    Have we considered the value of that overhead canopy tree...? How long it took to grow?

    The value of the nuts it bears? The shade provided? The benefits to wildlife and air quality?

    [Will you plant a replacement...for your grandchildren...because even they will not see your replacement tree matured.]


    Cutting down a huge tree is akin to "paint everything white". No discretion.


    P.S. [Obviously,] my vote for keeping the tree does Not extend to leaving limbs as hazard of falling on the house.

  • 6 years ago

    Really like your, *Glimmer* color.

    For a White - anywhere inside or out - look at BMoore's *China White*. Definitely white, without any Stark.


    Built in the 60s, you have hard wood floors, a major expense to replicate. [...and why everyone now chooses laminated wood]

    Someone has commented above with pictures...and beautiful wood floors seen the minute the front door opens, is a strong Selling point. Strong selling point. You can elect not to sand and refinish every room, just the most noticeable.

    If you do but ONE thing to the interior, refinish the floor inside the front door.


    Yes, remove shower curtain, having the shower tile sparkle.

    Yes, remove shutters on the double window [so wrong].

    Yes, remove the screen door [store in garage] to highlight the original french door.

    Yes, to pressure-washing all out front; amazing the *color* change of dirty concrete versus freshly cleaned.

    Yes, accent the entry with several pots of color [plants].

    Accent the walnut tree everyone should take pride in. One comment gave an excellent suggestion for a landscape bed under the tree. Don't know what the circumference of its canopy is, but must be fairly large [huge], so not sure it is feasible. Liriope or mondo grass would be an excellent ground cover for this option.

    Do remove any branches overhanging the roof, and remove the lower [newer scraggle] growth that obscures any view of the house. [Those shorter horizontal branches, that are right above the roof line.]

    Design2 girl thanked lazidazi
  • 6 years ago

    Circling back to give an update. I have been crazy busy with this house and have officially closed, obtained insurance, changed all the utility bills/services, and moved all the furniture out of the home. Whew! I also had the carpet removed from all the bedrooms, pressure washed the concrete, cleaned out the garage, cleaned the cabinets, floors, and met with 2 property management companies, and I have decided to rent this home.


    The improvements I have decided on include:

    1. Upgrading the Electrical system to 200 amps with a new circuit breaker panel

    2. Painting all ceilings, walls, trim, doors, kitchen cabinets, exterior shutters, railings, (fourth quote is coming today, ugh)

    3. Cleaning, buffing, renewing hardwood flooring (while I would love to totally refinish all the flooring, it is not feasible at this time) After looking at carpet samples, I decided I hate carpet so I think it will be fine to rent with hardwood floors, and I will refinish them completely before I sell it.

    4. Install new door locks

    5. Remove all sheers/window curtains and Install blinds.


    One painter discovered that the wallpaper is actually installed over paneling, which I did NOT know. His recommendation was to not attempt to remove it from the paneling because he said it would create a huge problem with the wall behind and I could potentially get into re- sheet rocking the whole room. Ugh, ugh. So, I may decide to use the spackling compound and sealing with an oil based primer, then painting over this area. This is the biggest issue right now.


    I received a quote to install a security system, but the property management guy said, don't bother, most renters in the area don't expect a security system. He also said not to paint the ceilings, kitchen cabinets or change the curtains. He definitely said not to try to rent it partially furnished. So, it was helpful to talk to the local rental expert people. The second opinion definitely said get rid of all furniture.

    The local quotes here for property management range from 8-10% which I am willing to accept, as I live 40 minutes away and my other half is not excited about fielding phone calls or being the "maintenance man".


    I will sell this home in the future, but I would like to try the rental game for a short time, anyway.




  • 6 years ago

    Sounds like you got great advice!

  • 6 years ago

    Go to MrLandlord.com Q&A to get the best information on being a landlord. Even if you are using a property manager you should be very familiar with how to be a good landlord to select a good manager and be able to monitor for performance.

    I had a friend who gave final approval for all tenants. It worked well for her.

    Design2 girl thanked mainenell
  • 6 years ago

    Any thoughts to removing the massive tree in front of the door? Likely a couple of thousand...

  • 6 years ago

    Any new photos?

  • 6 years ago

    I suggest you install an electronic deadbolt and do not give them renters the keys, only codes. They cost more but won't have to replaced or rekeyed for each new renter. Plus, if you keep the keys, you can't be locked out, even if the tenants change the code.

  • 6 years ago

    I used electronic deadbolts on my last rental. Great idea. Be sure to install smoke detectors and get some fire extinguishers. One for the kitchen and another one near the washer dryer. Mount them on the wall so they don't disappear. Your property manager should have a list and protocol for necessary items.

    Design2 girl thanked homechef59
  • PRO
    6 years ago

    Yikes!! Are you sure? This could turn into a big headache. Sure hope not. Are the upgrades required to sell it? Can you recover that sunk cost? Sure hope it works out. But with your standards I worry about you getting any profit from this? Maybe just having fun?

  • 6 years ago

    I buy only 10 year sealed battery smoke detectors because I have seen tenants "borrow" batteries to use in their remote controls. Also, buy combination smoke and carbon monoxide, one per level and positioned no more than 15 feet from the bedroom doors. Install a smoke detector in each bedroom, in addition to the ones in the general living area.

  • 6 years ago

    It is sometimes possible to install LVT over hardwood floors without ruining the hardwood floors. Talk to a local floor specialist to see if the rental's floors could be protected that way.

  • 6 years ago
    last modified: 6 years ago

    Admittedly the best you can do is to speak with a real estate agent first. Make an overall impression on the costs and the selling price and after you'll know better if it's worth investing in, or not. You can take a look at the Section 1031 exchange and see how all this works if you're interested in doing this for a living. I wouldn't do any major changes, because the house is old and has a specific charm that we don't see that often these days. Of course, the interior, the bathroom, and the kitchen as you already said, need an upgrade but don't go overboard, it will lose its uniqueness.

  • PRO
    6 years ago

    Hey DesignGirl 2. Just checking in to see what you have been doing? Hope you are OK?

  • 5 years ago
    last modified: 5 years ago

    Please flag the spam from Kai Robertson.

  • 5 years ago

    From Kai Robertson:

    Why my comment are flaged like a spam ?

    Because it's the definition of spam. You pretend to be helping with a comment that doesn't really apply to the question and you link to your company's website in order to drive traffic there. That's what spam is.

  • 5 years ago
    last modified: 5 years ago

    Since you're responding to a post that's a year old and linking to your website it's obviously spam. Plus you continue to repost the unacceptable content which could get you banned from this site.

  • 5 years ago

    Kai - investing in property that requires a management company because it is not close enough for you to manage personally is frequently the definition of bad investment. Because you don’t really know what is going on or have any control of tenants and maintenance.

  • 5 years ago

    mainenell, don't take "him" seriously. Just a bot or someone trying to earn money by directing traffic to (often dangerous or illegal) websites. Think the forum version of a telemarketer.

  • 5 years ago

    Oh, please rosestewar, tell us more.

  • 4 years ago
    last modified: 4 years ago

    "Grey Eugene", can you add more?

  • 4 years ago

    Just to come back and update this thread, I just really lucked out and decided to manage this rental hime myself. I advertised it on Zillow and had it rented quickly to a great family who took care of it very nicely. They lived there 18 months, I Re-listed it on Zillow and had 24 applications! I raised the rent, and now have a lovely small family that lives the neighborhood. This has been a great rental home investment.

  • 4 years ago

    The rental market is pretty crazy right now.

  • PRO
    4 years ago

    Fantastic! You did the reno just right! Kudos to you. I wondered about it every once in a while. Thanks for the update!

  • 4 years ago

    https://askinglot.com/how-much-is-a-black-walnut-tree-worth-for-lumber

    If you're having the large walnut tree removed, before you agree to a price, and which company does it, the tree's value for wood should be considered.