If read thoroughly, this article should offer immense value at my expense. I’m wrapping up a renovation in which I just made plenty of mistakes. The rental looks great, but in turning over the unit, I upgraded unnecessary components that simply won’t add to cash flow. I went a bit too far with additional costs in order to modernize things. My future tenant(s) will be lucky as a result. Allow me to explain how the situation arose. I’ll be sure to include pictures along the way.
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The Tenants Move Out
My former tenants rented the unit for nearly three years. In my past article, I referenced an REO – this is the one for $85,500. It has been a great investment, but the husband had offered me a deal that ultimately led to a money drain. He was a handy guy and was doing a renovation in an affluent neighborhood, and mentioned that the granite and cabinetry being pulled out of the kitchen were in great condition. My ears perked up. I love upgrades. He offered to pull out the old cabinetry in my unit and place the “new” stuff in there in exchange for one month’s rent.
Ummmm, new kitchen for that? Deal.
This Wasn’t the Bargain
The cabinets looked terrific in pictures once installed, but for some reason, the granite simply didn’t look right. I hadn’t gone to the unit yet. Instead, I was being sent progress pictures on my phone. Big mistake. Lesson learned? Trust, but verify.
The cuts of the granite weren’t the same width (they must have come from different sections). They were pieced off, leaving seams everywhere. It looked terrible. The contractors I brought in refused to touch or fix it. The original formica had already been damaged in removal, so going back to the original countertop was out. I can see the cash flow riding off in the sunset in my mind.
As a result of this charade, the tenants and I mutually agreed to go our separate ways. They had two dogs, so the carpets in both bedrooms had to go. Let this be a lesson that if a deal sounds too good to be true, it usually is. I had to buy new granite for a new tenant. This isn’t how to…