In episode 7 of Profitable Powerhouse Podcast, learn how to get your 1% on the investment property you just bought. In episode 6 of Profitable Powerhouse Properties your hosts Jonathan Cook and Bryan Jenkins talk about how the market you choose to buy in affects your property and scope of work.
Episode Highlights:
- Why you might choose to buy a C-class property as your rental investment.
- It’s good to have an area where some of the homes are owner-occupied, especially in a C-class area.
- What it means when a general contractor talks about a package deal.
- How to give your property the “it” factor.
- Every rental market you’re looking at has a bottom and a top and you need to identify the investor ahead of time.
- Some necessary rehab scopes for properties on the bottom of the market.
- AHI recommends that their clients add deadbolts to a property if they don’t already exist.
- Color of the house makes a difference when renting to tenants - you want a consistent color throughout.
- It’s better to spend a little more up front than to have tenants who are upset with the house and how things work.
- The longer you can keep your tenant intact, the more profit you can experience.
- People form their opinions the moment they see the property whether in person or online.
- Adding some landscaping or gardening can up the “it” factor on your property.
- Learn some good choices for finish options and why it makes a difference to have updated finishes.
- How Luxury vinyl tiles look like hardwoods but for a fraction of the price.
- If you’re buying an old door frame with old hinges, pop on some new ones, it’s a minimal expense.
- All the little tweaks you do to you C property could bring it up to a C+.
- If a property already has something that’s kind of custom that’s something you may want to restore or highlight.
- You have to think about if you were buying a home to live in it, what would you be looking for?
- In today’s marketplace, people don’t want to come in and improve.
- Homes that aren’t held to a higher standard are going to get bypassed for the ones that are better and more of a blank slate.
- If a tenant has a great experience they’ll turn into more renewals.
Key Points:
- Buying a C-class property can be very profitable, you need to understand the community and scope of work.
- If the windows on rental are not operable that is a deal breaker for AHI, windows that don’t work are a safety issue.
- When you have a cheap rehab it’s easy to notice and says you didn’t have a plan going into it.
Tweetable Quotes:
- “Every rental market you’re looking at has a bottom and a top, you have to identify the investor on the front-end.” -Bryan
- “It’s our job to mitigate risk and reduce risk for owners.” -Bryan
- “A tenant needs to be able to envision their life in the rental house, and neutrals help accomplish that.” -Bryan
Resources Mentioned:
- Check out our website ahiproperties.com
- Check out Birmingham Insurance Group
- Start earning passive income with Roofstock.com
- Email Jonathan and Bryan at Podcast@AHIProperties.com