Good morning DigLand,
I hope everyone enjoyed last night's meeting. For those of you that missed it, we had Rich O'Neill discussing how to bulletproof your rentals. Two of the items Rich discussed caught my attention. Using schedule 40 pvc pipes under the sinks with a cleanout after the trap because the pipes are smoother and more robust than the typical thinner pvc pipes normally used. This will prevent damage and leaks caused by tenants jamming things under the sink. The other item was oversizing all drain and sewer lines by an inch compared to code. More space = less clogs. I heard even Anil learned something new with the schedule 40 drain pipe idea!
On the networking side of things, I got to meet long time DIG member and answerline contributor Steve Ammon. I had an interesting conversation with newer DIG member Joseph [last name]--sorry Joe!--about a project he's under contract for in Reading. He plans to buy it in his own name, rehab, rent it out, then refi it. He has a broker/lender who claims he can do a cash out refi for him as a rental held in his own name. This is something I have not heard of...mainly because I've never attempted it. I encouraged him to confirm this with the broker before purchasing in his name. I also offered some options for him using an LLC and some of our local hard-ish money lenders in DIG such as Steve Hitlabiddle of Success Lending and Karen Fischer of
123lending.net in case his broker cannot confirm a cash out refi. For those more experienced in this area than me, please chime in if doing a cash out refi on a non owner occupied property in your own name is feasible.
I met some new members and guests last night as well and I hope to see them back for future meetings. I also got to see long time member and contributor Steve Babiak for the first time in a long time. His subgroup had a panel discussion a couple of years ago about tenant-proofing rentals. It was recorded, if I am able to get a copy of it, I'll have it posted here. In the meantime, here is a list of things Anil does, or at least did, at the time (March of 2022). I would take this list as well as what Rich provided last night and start implementing them.
Some of the tenant proofing things we did included the following:
- LVT floors waterproof throughout
- Cement gray tiles with dark grout for all the shower walls (I am looking for any other suggestions for color schemes too)
- New windows
- Spray foam insulation
- new heat pumps, central air, new appliances, new doors with every door getting a door stop even closet doors
- no handle locks anywhere, deadbolt only
- new electric with panels in each apt, new manabloc pex plumbing with panel in each apt for easy shut off
- new roof, hardwire smoke detectors
- visible security cameras on the exterior of the property
- bury all gutter and downspout extensions
A few other things I have added with this rehab:
1) 5/8 inch drywall to be installed everywhere- harder to break, more sound proof, labor is about the same, $2 or so difference in cost per sheet
2) No tubs, all showers only, moen or delta fixtures only
3) new sewer line, new water line,
5) American standard NON water saving toilets on 2nd floor (more pressure w water to push solids the further distance)
6) nothing more than a 3 light door for an entry door or 1/4 lite
7) only 2 bed apts get a dishwasher
I look forward to seeing you all at the next meeting, where we will have DIG legend Dan Harvey presenting to us.