You asked me about the flooring I have in my rentals. Very timely subject: Our latest (4th) project is about the same size as yours. My handyman finished installing some low cost vinyl in the kitchen. Tomorrow he will sand down the original hardwood floor in living room, dining area and hallway (1940's construction - hardwood over a half inch thick. We had to take up the carpet because of cat odor in one corner. Re-carpeting would have been cheaper than refinishing, but we think the hardwood will look better, and have better resale value. We expect to sell or exchange some of our rentals in five to ten years. The rest of the house has laminate installed by previous owner in two bedrooms, carpet remains in a third bedroom, one bath is vinyl, the other is tile floor. A mix... In our first rental we simply steam cleaned the existing carpet in two bedrooms, polished and waxed the hardwood floors in the living and dining area. In our second rental we tore out the carpet due to odor, though it looked good. Regretted that, because the odor was in the window casings, not the carpet. Oh well... we then put down cheap laminate from IKEA... The tenants there now, over a year, have kept it in apparently good condition. Still looks as if it is new.
Third house we bought from a flipper, so it had new carpet and vinyl.
When I was young, I rented a house with beautiful thick white carpet. Though I was a renter, I had it steam cleaned by a professional truck mount steam cleaning company every 3 months to keep it nice. If I were you, I would not take out the white carpet until it gets ruined.
One rule of landlording. "Don't fix it, unless it is broken" Not really a rule, but generally you want to keep your capital improvements and expenses under control. Having the roof fixed and warranted was smart. Water intrusion can be very damaging and costly. When choosing flooring, fixtures, and appliances, we often settle for good enough, instead of what we would like most, since our tenants and prospective tenants prefer the reasonable rent over the latest style.
We buy a lot of home improvement product from the Habitat for Humanity "Re - store". Savings of up to 80% on some items..
I also sent this to your email.
I think your on the right track, I would be cautious of over extending yourself.
I'm 23 years old now, so I know I'm young to own two houses, but I figure the quicker I can get one going as an income property, the better.
Good job! Sounds like you have done your homework. You are correct about FHA not allowing the rental income but I would recommend talking with a few different lenders to see if there is any other options out there. I know of one in particular that might be able to help you. Contact me if you like and I will refer someone to you.
Sit tight, home ownership isn't about the first month, it about the 360 months in between that you have to make mortgage payments, fix the roof, replace the plumbing, put up a fence, repaint the exterior. Congrats on the purchase but in todays market for a 2nd home, you will need 20% down, plus have to cover both mortgages. Instead of trying to rent out the house completely could you rent a room out? PS, being a landlord is not just collecting rent, if you are as lucky as I am and have your property rented 100% of the time, you will also be as lucky to get the call on Christmas eve that the waterline broke. Guess what if i wanted to pay a plumber to replace the valve that broke, a $4 valve and a generally a $50 fix, I would have had to pay $250 for Christmas Eve.., yeah so i packed up my tools, took a quick trip 30 mins away to fix the leak. After paying for the water damage of my tenants personal property i was only out a $300 for the month after collecting rent of $1200...yeah, that is right $1500 of damage to my tenants property...Sit tight, learn to love this house in and out, rent out a room, start the 2 year clock of being a landlord so your mortgage company can consider you a landlord sooner if you do come into money, see how easy it is to collect rent from someone you see everyday, see how easy it is to manage people's lives. It is harder than you think. If you want I just write a blog about home ownership ,you might find it a good read, now and resource in future about buying investments or a second home. Become a follower of the Blog, I think you will like it.
Thank you. Justin Ruzicka – The House-Guy
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Prior to purchasing your next home you can rent this one out and with a 12 month lease or more many lending institutions will not count this as debt against you. Thus freeing up some or all of your buying power again.
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My best, and congrats on house #1!