Follow Me as I Invest in a Rental Property – Part 3

Construction has begun on my little downtown mountain home!  This actually started faster than planned, which never happens.  Here are more details and processes that are happening in real-time.

Zoning:  This property is zoned both commercial and residential which gave me a lot of freedom to decide on which way to build and lease for the future.  It was being used as commercial and I have decided to make it back into a long term lease home.  To do that I needed to make sure it would be attractive to potential renters in the future.

Current state: 3 bedroom / 1.5 bath and no kitchen.

Construction Plan: I am making it a 3 bedroom / 2 bath and kitchen.  The kitchen and baths are vital to a good rental.  Of course, I have to add a kitchen since it did not have one, but I am expanding the living/dining area into one big kitchen/living area.  The downstairs half bath which splits the two bedrooms will be upgraded with a large walk-in shower and floating vanity with two sinks.  This way the two bedrooms can split it and have their own sinks.  That is a small expense that looks like a big upgrade.

The open kitchen will have new cabinets, countertops, and stainless steel appliances.  Using the money discount site Rakuten, they offer 3% back when buying appliances from Appliance Connection.  The shipping is free and I can get a 4 piece appliance package (Fridge/Stove/Microwave & Hood, Dishwasher) for $1950.00.  Also using a 1% back credit card, I am getting a great deal plus a 4% discount.  Last year I bought this offer and Rakuten was offering 10%! 

In the bathrooms, I purchased two 48′ floating vanities with two sinks and backsplash.  The vanities were approx $925 each and matching so the bathrooms will be very similar saving money and time.

Also ordered this week was 1100 sq ft of waterproof laminate flooring for approx $3000.00.  That two is being shipped directly to the project site.  The laminate will be a neutral gray wood floor that is durable and easy to clean.  With rental homes, staying away from the carpet is a big must BUT on this home, the stairs and upstairs carpet were in good shape so I am keeping that for now which will save money on laminate and install.

Other purchases so far…. shower kits and valves along with a shower pan for each bathroom.  We will tile the showers with a large clean looking tile that will not date itself.  A quick note that the shower kits are modern, again giving an inexpensive way of upgrading without a lot of costs.  Doors and closet doors were also purchased.  Because of costs, I had to go with hollow room doors via Home Depot.  The slotted closet doors were ordered online and will be shipped.  That was cheaper and more convenient than purchasing at Home Depot or Lowes.

And last on the demo list was the front deck.  That has been pulled and we are looking at doing a brick patio which saves from rebuilding another deck. So far things are moving fast and easy.  Next post I will talk about to permit or not to permit a project!

CarterW.

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