Thanks for stopping by The Virgin Landlord!
We have a new blog home....check us out HERE
Saturday, January 12, 2013
Thursday, July 19, 2012
Our Properties: Part 3
Well due to the lovely person who somehow implanted some sort of monster virus on my laptop it has been quite a while since I have written a post. That combined with the fact that I had to do quite a bit of digging to find the pictures for this post. Never-the-less here we go.
It seems as if every rental property we own was initially intended to be something else and that could not be more true than it is with property number three. This single family house was actually supposed to be a "flip". However, it was just about the largest home in the neighborhood at the time and Andrew was trying to sell it in the summer of 2008...enough said. So yes it's a rental property now. I have to preface this next statement by saying I am SO thankful for our rentals as well as our primary residence so please don't take what I am about to say out of context... This house is a pain in the butt!
Besides the fact that it was supposed to be sold to profit a quick 50k and it didn't work out, it is the one rental that we have with a pretty hefty mortgage payment, therefore making it fairly difficult to find tenants for it without taking a loss. It is also an older home so repairs seem to come up a little more often.
Anyhow, because this was supposed to be a flip and I know everyone loves a good before and after story, I have posted a few photos for your viewing pleasure. So here she is with 4 bedrooms, 2 full bathrooms, eat in kitchen, separate dining room, formal living room, large family room, laundry room, insulated storage shed and a detached brick 2 car garage!
New windows, a little power washing, and some landscaping went a long way on the exterior.
Dining room after. Refinished floors, paint, and a new fixture did the trick.
This is the almost completed bathroom picture. I don't have a final photo but this is basically how it turned out. We just cleaned the heck out of it, had it sprayed for mold and replaced the sink and fixtures since all of the tile was actually in good shape.
This is a second view of the entryway and a small view of the downstairs master bedroom.
Somehow I don't have a before photo of the kitchen but I suppose the after picture deserves at least an honorable mention so here she is.
We hadn't installed the appliances yet but you get the idea.
It seems as if every rental property we own was initially intended to be something else and that could not be more true than it is with property number three. This single family house was actually supposed to be a "flip". However, it was just about the largest home in the neighborhood at the time and Andrew was trying to sell it in the summer of 2008...enough said. So yes it's a rental property now. I have to preface this next statement by saying I am SO thankful for our rentals as well as our primary residence so please don't take what I am about to say out of context... This house is a pain in the butt!
Besides the fact that it was supposed to be sold to profit a quick 50k and it didn't work out, it is the one rental that we have with a pretty hefty mortgage payment, therefore making it fairly difficult to find tenants for it without taking a loss. It is also an older home so repairs seem to come up a little more often.
Anyhow, because this was supposed to be a flip and I know everyone loves a good before and after story, I have posted a few photos for your viewing pleasure. So here she is with 4 bedrooms, 2 full bathrooms, eat in kitchen, separate dining room, formal living room, large family room, laundry room, insulated storage shed and a detached brick 2 car garage!
New windows, a little power washing, and some landscaping went a long way on the exterior.
This was the family room before. Loads of potential but at the time just a mess.
Family room after
This was the dining room before. Isn't the wall paper awesome! Removing it was actually pretty expensive and a little frustrating for the team that did it I'm sure.
Dining room after. Refinished floors, paint, and a new fixture did the trick.
Yea.... I don't really know what to say about this one. The picture probably says it all.
This is the almost completed bathroom picture. I don't have a final photo but this is basically how it turned out. We just cleaned the heck out of it, had it sprayed for mold and replaced the sink and fixtures since all of the tile was actually in good shape.
This was one of the upstairs bedrooms. It had loads of character with the built in drawers and extra storage. It just needed a little love.
Paint color starting to look familiar? Yes we used the same color through out to cut down on the cost. The house was over 2200 square feet total, needed new windows and the oil heat system was replaced with central AC. You do the math on that...yea, so we needed to cut costs where ever possible. = )
This is the view from the front door looking into the formal living room and dining room in the back. The poster of that guy in the window was awesome and I told Andrew he should leave it up and the house would definetely sell but he wouldn't listen.
Hello gorgeous.
Somehow I don't have a before photo of the kitchen but I suppose the after picture deserves at least an honorable mention so here she is.
This is the detached garage before. Forgive me for pointing out the obvious.
And after. So there you have it folks! I hope you enjoyed the show.
Friday, June 29, 2012
Renting to Section 8 Tenants
I realize that I owe you a post on "when to pull the plug on a flip" and I should also be continuing the series on "our properties" but I have to get a little off schedule just for a moment. A situation arose today with one of our rentals that demands that I write a post that takes me in a slightly different direction. I'm sure you gathered from the title that I'm talking about a section 8 tenants. If you are not familiar with the term a section 8 tenant is a person who for one reason or another is recieving financial aid from the city to obtain housing. In most cases the majority if not all of their rent is being paid by the city.
We had always been a little nervous in the past about renting to tenants with housing vouchers mostly because of the stereotypes that these folks tend to fall victim to. They will tear up your property being the big one. I am certainly not being judgemental of anyone who is down on their luck but a damaged property equals a vacant property and a vacant property is...well...not good. However after we had a tenant completley trash one of our rentals who was not section 8 we determined that A. It wasn't fair to assume that because someone needs housing assistance that they will destroy your home and B. You run the risk of the property getting trashed regardless. So, for the first time we offered one of our rentals to a tenant using a housing voucher. Here is what we have learned from the experience thus far...
1. NEVER, NEVER, NEVER let a section 8 tenant move into your rental before the housing authority has given you a written contract stating that they approve the home. Sounds like common sense right? Well, it was a dumb mistake that we made that I discussed in our post on PROPERTY MANAGEMENT MISTAKES. We are still paying for that error. The tenant moved in at the end of March and we have yet to receive our first payment from the housing authority. Lame.
2. The one very positive side to renting to section 8 tenants is that your rent payment (once it gets started) is guaranteed. No pacing back and forth in front of your mail box hoping that rent check will some how magically appear.
3.Another strong positive to renting to section 8 tenants is that the housing department will conduct an inspection of the property once per year. Since we have not had our tenant that long yet, I am not sure how thorough or intense the inspection is but never the less there is an inspection so I can only assume things can't get too bad.
4. As we learned today you may not always have as direct of a line of communication with the housing office as you would like. We have called and left messages several times to confirm that the process was moving along and that we should expect payment shortly but we never receive return calls. Then today we received the contract and the front page of it had the correct tenant's name but wrong property address and rent payment. So of course Andrew called (at 2:30 on a Friday) and a message came on that said "We are currently closed, please call back between 8 and 5 Monday through Friday...go figure.
So there you have it. We are hoping that this person will be a long term tenant and we will be able to depend on that rent payment coming in like clock work on the first of every month but I will defintely keep you posted!
We had always been a little nervous in the past about renting to tenants with housing vouchers mostly because of the stereotypes that these folks tend to fall victim to. They will tear up your property being the big one. I am certainly not being judgemental of anyone who is down on their luck but a damaged property equals a vacant property and a vacant property is...well...not good. However after we had a tenant completley trash one of our rentals who was not section 8 we determined that A. It wasn't fair to assume that because someone needs housing assistance that they will destroy your home and B. You run the risk of the property getting trashed regardless. So, for the first time we offered one of our rentals to a tenant using a housing voucher. Here is what we have learned from the experience thus far...
1. NEVER, NEVER, NEVER let a section 8 tenant move into your rental before the housing authority has given you a written contract stating that they approve the home. Sounds like common sense right? Well, it was a dumb mistake that we made that I discussed in our post on PROPERTY MANAGEMENT MISTAKES. We are still paying for that error. The tenant moved in at the end of March and we have yet to receive our first payment from the housing authority. Lame.
2. The one very positive side to renting to section 8 tenants is that your rent payment (once it gets started) is guaranteed. No pacing back and forth in front of your mail box hoping that rent check will some how magically appear.
3.Another strong positive to renting to section 8 tenants is that the housing department will conduct an inspection of the property once per year. Since we have not had our tenant that long yet, I am not sure how thorough or intense the inspection is but never the less there is an inspection so I can only assume things can't get too bad.
4. As we learned today you may not always have as direct of a line of communication with the housing office as you would like. We have called and left messages several times to confirm that the process was moving along and that we should expect payment shortly but we never receive return calls. Then today we received the contract and the front page of it had the correct tenant's name but wrong property address and rent payment. So of course Andrew called (at 2:30 on a Friday) and a message came on that said "We are currently closed, please call back between 8 and 5 Monday through Friday...go figure.
So there you have it. We are hoping that this person will be a long term tenant and we will be able to depend on that rent payment coming in like clock work on the first of every month but I will defintely keep you posted!
Monday, June 25, 2012
Our Properties: Part 2
As we continue with the series on "our properties", I hope you enjoyed part one and I would like to introduce you to property number two. This next one is the first property that Andrew purchased. Strange story with this one is that it started out as a rental, became his primary residence and now it's a rental again. Being the awesome younger brother that he is, Andrew bought this condo for his sister to live in while she transitioned from college to her own home after getting engaged and later married. After she moved out, Andrew took it on as his primary residence for a few years before we got married.
This property is a third floor condo with two bedrooms, one bathroom and it's a little over 800 square feet. It made a great bachelor pad for him and now it is a pretty good rental.
It's an older unit so we made a couple minor upgrades to it to give it a slightly more modern feel. Laminate wood flooring and a tile backsplash in the kitchen which I did myself (patting myself on the back). The plan is to upgrade the appliances and counter tops at some point as well. Hey, we may even get a little crazy and re-face the cabinets.
So there you have it ladies and gents...property number two. Stay tuned for number three after my post on when to pull the plug on a flip!
This property is a third floor condo with two bedrooms, one bathroom and it's a little over 800 square feet. It made a great bachelor pad for him and now it is a pretty good rental.
It's an older unit so we made a couple minor upgrades to it to give it a slightly more modern feel. Laminate wood flooring and a tile backsplash in the kitchen which I did myself (patting myself on the back). The plan is to upgrade the appliances and counter tops at some point as well. Hey, we may even get a little crazy and re-face the cabinets.
Friday, June 22, 2012
Is Real Estate a Dead Investment?
Andrew completed his degree in Real Estate and Urban Planning with memories of guest speakers who owned dozens of properties and made a great living buying, selling, and renting real estate. Now that we own a few properties of our own we can appreciate the value that real estate can add to ones over all financial picture. Sure there are times when the flips don't sell and repairs on on rentals get over whelming but in the end I hope and suspect the reward will far surpass the risk.
The game has definitely changed over the past several years but would I call real estate dead? Absolutely not. Home ownership is still valuable and real estate investing still offers limitless opportunities. Of course that is only my opinion for what it's worth, so you weigh in. Have you been burned by real estate over the past 4 to 5 years? If so, how and does this change your investment stratedgy if at all?
Thursday, June 21, 2012
Our Properties: Part One
I would like to start a series of posts that will introduce you to our properties. If you would like a sneak preview of what properties I will be talking about next you can check out the OUR STORY tab and see the list of the rentals we currently own (I will go in order).
OK, well let's start from the beginning. The first property was a 3 bedroom 1 1/2 bathroom home in Louisiana with approximately 1400 sqft. Andrew and I were not married at the time, we started dating in 2006 and this property was purchased in 2002. Why Louisiana you ask? I was active duty military at the time and just happened to be stationed there. Yes...military, so you know what that means, VA loan. You gotta love VA loans! Anyhow, I digress....
I know, I know, pink brick. Looking back, I'm not so crazy about it either.
And pink tile, even worse! My apologies that you can't "unsee" this horror.
OK, well let's start from the beginning. The first property was a 3 bedroom 1 1/2 bathroom home in Louisiana with approximately 1400 sqft. Andrew and I were not married at the time, we started dating in 2006 and this property was purchased in 2002. Why Louisiana you ask? I was active duty military at the time and just happened to be stationed there. Yes...military, so you know what that means, VA loan. You gotta love VA loans! Anyhow, I digress....
The kitchen had a gas stove and wall oven, both of which I loved. The beige colored cabinets used to be blue but when I was ready to sell it, buyers were not thrilled about blue cabinets surprise, surprise.
I sold this house in 2008 after living in it for one year and having it as a rental property for almost 4 years. During the time that it was a rental I hired a property manager to maintain it since I moved to Nebraska and later Virginia after leaving Louisiana. So there you have it property number 1!
Monday, June 18, 2012
Why No One is Renting Your House
Now there's a catchy title for ya! It is true that there are some very obvious mistakes that landlords make that cause their properties to sit vacant a lot longer than they should. The photo here is one that was taken when my husband and I went for walk a few days ago. Do you see what's wrong with this picture? Believe it or not there actually is a phone number listed on that "for rent" sign but it is so light and small you have to virtually stand next to the sign to see it. Problem number one....
1. Your potential tenants don't know how to contact you! People will see this sign in the yard but the likelihood of them wanting to stop the car and walk up to it to take down the number are less likely. Of course some people might, but seriously, if you want to rent out your house make it easy for them.
2. Your house has no curb appeal. I challenge you to drive past your house with a fresh perspective. Pretend for a moment that you don't own it. If you were looking for a nice home to rent would you be attracted to your house? Compare it to other homes on the street. Make sure that your lawn is well kept and manicured. If there are flower beds make sure they aren't over grown and actually add to the appearance of the house. Chipped or badly faded paint and broken gutters are also common curb appeal killers.
3. Your asking too much for rent. Before you list your house for rent, do your homework. Don't just arbitrarily choose an amount that you feel the house is worth. You will waste a lot of your time waiting on a tenant that isn't coming. Research what comparable properties in your area are renting for and price yours accordingly. Perhaps slightly under market rent if you need a tenant quickly.
4. You are not advertising well. Depending on the location of the property you may be able to simply post a "for rent" sign in the yard and call it a day, but to really successfully advertise, diversity is the key. Having a yard sign as well as free (Craigs List, Trulia, Zillow) and paid online advertising (rentals.com) is ideal. Make sure that wherever people go to find homes for rent, your house is there.
5. Your house doesn't show well inside. Just as important as a freshly manicured lawn, is a clean house! If there is currently a tenant living in the home be sure you give them ample notice that you will be showing the property, not only as a courtesy and to protect yourself legally but to give them an opportunity to tidy up. If the house is vacant be sure that it is clean and inviting inside. No one wants to live in a house that still smells like your last tenants cats and cigarettes!
1. Your potential tenants don't know how to contact you! People will see this sign in the yard but the likelihood of them wanting to stop the car and walk up to it to take down the number are less likely. Of course some people might, but seriously, if you want to rent out your house make it easy for them.2. Your house has no curb appeal. I challenge you to drive past your house with a fresh perspective. Pretend for a moment that you don't own it. If you were looking for a nice home to rent would you be attracted to your house? Compare it to other homes on the street. Make sure that your lawn is well kept and manicured. If there are flower beds make sure they aren't over grown and actually add to the appearance of the house. Chipped or badly faded paint and broken gutters are also common curb appeal killers.
3. Your asking too much for rent. Before you list your house for rent, do your homework. Don't just arbitrarily choose an amount that you feel the house is worth. You will waste a lot of your time waiting on a tenant that isn't coming. Research what comparable properties in your area are renting for and price yours accordingly. Perhaps slightly under market rent if you need a tenant quickly.
4. You are not advertising well. Depending on the location of the property you may be able to simply post a "for rent" sign in the yard and call it a day, but to really successfully advertise, diversity is the key. Having a yard sign as well as free (Craigs List, Trulia, Zillow) and paid online advertising (rentals.com) is ideal. Make sure that wherever people go to find homes for rent, your house is there.
5. Your house doesn't show well inside. Just as important as a freshly manicured lawn, is a clean house! If there is currently a tenant living in the home be sure you give them ample notice that you will be showing the property, not only as a courtesy and to protect yourself legally but to give them an opportunity to tidy up. If the house is vacant be sure that it is clean and inviting inside. No one wants to live in a house that still smells like your last tenants cats and cigarettes!
Subscribe to:
Posts (Atom)
