On the Market

Note from my property manager:

"I spoke with the Vendor this morning and the work in the upstairs unit is complete. The cleaning crew was scheduled to clean the unit today..."

SWEET! Awesome! Let's get this bad boy on the market and get it rented!

Not so fast...

"Unfortunately, we received a communication from the Tenant in unit 1 last night that they had a small amount of water coming through the ceiling in their unit. We sent a contractor to the home and it was found that the shut off valve for the hot water heater had developed a small leak. The issue was corrected and a dehumidifier was placed in the downstairs unit. At this point, we have determined this to be a result of draining and removing the hot water heater while installing the drip pan. The vendor performing the work in the upstairs unit will make the small drywall repair in the ceiling of unit 1 and paint as a part of their responsibility for the issue."

I swear...I was literally JUST thinking about the downsides of having a multi-level duplex. I was thinking about how a kitchen, bathroom, or water heater leak could cause horrible damage to the downstairs unit. So, consider these risks if investing in a duplex (or any property) that has multiple levels. Don't let it scare you, just understand some of the risks.

After this little hiccup, we get to work on determining the listing price for the unit. Given that the lower unit is currently renting for $850 per month, my initial thought is to try and get more for the upper unit. Why?

-Upper units are generally more desirable, because the bottom unit hears more noise (ie: footsteps from the upper unit).
-The upper unit also has a nice deck that faces out to a tree lined backyard
-A comparable unit in a 4-plex down the street just got leased for $925

​My property manager and I decide to put the unit on the market at $900. You've got to realize...it's about to be WINTER. The longer it takes to get this unit rented, the closer we'll get to the cold, snowy days of Indianapolis. Which makes it harder to find tenants. I need to avoid having a vacant unit in the Winter. You don't want that. NOPE!

So, something really cool my property management company does, is they send weekly reports detailing leads that come in through online channels or over the phone, and the number of scheduled showings. This is awesome information to see as an owner.

Well....my property is officially on the market!

If you recall, I slightly over-priced My Second Property, and it sat on the market for a solid 6 weeks. I'm hoping I can avoid that with this property and get a renter into this unit ASAP before the harsh winter hits!

Takeaways

• When it comes to renovations and repairs, things probably won't go as smooth as expected. Deadlines won't always be met. Unexpected issues will pop up (water leaking into my lower unit?!?....good times).
• Carefully evaluate rental rates in the local neighborhood and understand the added amenities your property has over others. In my case, I value the upper unit over the lower unit and it also has a nice deck on the master bedroom.
• The Winter is generally a tough time to find tenants. I strongly recommend trying to avoid a vacant property in the Winter at all costs! Lay out your property acquisition plan, renovation plan, and assess when you'll have to market the property. That could be a major factor in your investing plan.

​-Tyler

NEXT POST: THE WAITING GAME