How I Renovate My Rental Properties | BEFORE & AFTER
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- เผยแพร่เมื่อ 14 ต.ค. 2024
- What is it like to turn a distressed rental property into a fully functioning home for tenants? In this video, you're going to see the full before & after process of how I renovate my rental properties!
You'll see various stages of the rehab process and learn about the numbers and materials. You'll get a behind the scenes look at the interior and exterior of multiple rental property units while they undergo a major renovation!
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I started watching your channel while deployed last year. Came home and bought a duplex that needed a full gut and renovation. Almost done now, but have managed to turn one unit into a successful AirBnB unit and converted the other unit from a 2/1 to a 3/2 unit to increase rent potential. In the meantime, we’ve managed to purchase 3 other rental properties, so we now have a total of 8 doors. Thank you for all of the videos, podcasts, and info you’ve put out there! We love your channel!
Awesome, way to take action!
How were you able to get financing on these properties?
@@billschram5465 probably a VA loan helped him considering he said he was deployed.
Великий Рен VA loans are only for Primary residences. Cannot purchase rental homes with it.
@@ivinalatham34 there is a way around that I just bought a 4 plex with a VA loan the catch is I have to live in one of the units for one year then I'm free to move out and on to the next one....
Thanks for taking the time to upload this. My Mom has decided to deed us 7 properties free and clear. May God continue to cause His face to shine on you and yours.
What a blessing!! Generational wealth at its finest.
Lucky you
Sheesh, gotta be nice
Renovation is important to attract more tenants or prospects for your property. Don't be thrifty on your business, if you put money on it your business will help you in the long run. Keep it up man and great video as always.
Thanks, Shane!
I just want to say thank you!
I have been flipping homes for 23 years and I started holding instead in the past 4 years thanks to your advice. We are now up to 18 doors. I’m great full for you and your wife.🥰
In order for me to buy a property to renovate,how much does it actually cost to buy a home that needs renovation ?
You give Real useful info! Some bloggers only make noise, nothing to learn, absolute waste of time. Used to watch your videos from Dubai also before. Great job. May God bless you for sharing your knowledge with the rest of the world. 🙏🙏🙏
Great video! Love these single story duplexes. Wish they were available in our area. I imagine they will be easy to manage
GREAT VIDEO and NICE JOB!!!
You do rehab much like I do. I like it. Keep it fresh and simple.
I normally switch to a 200 amp load panel even if old houses have 100 amp. I also replace the plugs and switches and plates with new white.
Approved for mortgage. Building starts in 30 or more days. Decided to rent the house I payed off.
Clayton, I love your videos! My husband and I went through complete financial ruin a few years back. So we bought a gorgeous old 1929 Craftsman Bungalow that needed work in a B to C area. It was a foreclosure, and we used what was left of my teeny tiny 401K to buy it outright. I would rather die than pay rent. We basically paid less for the home than for a decent used car!
We've lived here around five years, and done quite a bit of loving renovation. But the area is not where we want to be. We're desperate to finish the reno on the bungalow and dump it. It's just not a good fit for us, as we are getting older. Selling seemed like our only way out, though we both knew the real estate in this area is not very strong. We knew not to expect a huge profit, especially after so much reno.
Last winter I sold my other little house and dumped all the proceeds from that into buying a duplex in a much nicer state. It is strictly an investment; we do not plan to live there.
I tell you all this because something you said has given me newfound freedom; at least in my thinking. After watching your videos, we've decided the best thing to do is finish up the main things here then rent it out! We don't owe a dime on this home so it won't take us long to gain far more in rental income than we ever could by selling!
We're so excited and are also thinking of leveraging this home to try to gain another duplex in a nicer area. Retirement does not seem nearly so scary now!
One more thing, "cement" is technically a powder that comes in a bag, when mixed with water, sand, lime and other aggregates "cement" binds them all together to make concrete. No one ever really "falls on the cement", they fall on the concrete. I always try to use the correct terms when working with people in the trades as I want them to take me seriously. Just something my Father taught me!
God bless you, we'll keep watching!
Excellent! Thank you so much for sharing this. 🙏🏼
I love the simplicity and practicality of a rental renovation.. Is it strange I want these renovations for my own place? 😂 I don’t see the hype in buying the fanciest expensive materials in any home. The cheap & durable materials make me happy
10 windows for $1500? Wow, must be nice....lowest quote I received here in Georgia just last week for 10 windows was $3800. Keep up the good work.
he must have a deal with a local contractor since he does this all the time.
Keith C. Brown no way. Must not include labor
Yeah I've watched this dude on TV since the early 2000's. It seems like an honest caring guy. But stuff like this makes me wonder. It could just be that he has a good deal due to volume but it would be nice if he would explain it.
In Cleveland you can get good quality windows installed for $150 a window. Affordable Window Company.
That is a ridiculously low price. It costs us more than that and we installed our own. Great job.
I love the sound of rehab!
Super cool production! Love the edits, we do Renos too! Keep up the great work!
Always excellent content. Thank you Clayton! Keep them coming.
Thanks so much for the kind words.
Thank you Clayton. Very valuable information.
Thanks for walking us through this process. Great video.
So glad you liked it!
Wow! Can't get anything done for those numbers here in California. Nice video!
Love that you provide specific costs!
Thank you for this video please keep posting renovations n price love it. 😍😍😍😍
On a design standpoint, this renovation looks very good!
Clayton, I watch and read a lot of your material, but your numbers seem really off. Please show material and labor. One window installed is $300-$400 each. 10 standard size windows would be at least $1,500-$2,000 for material
He’s doing tons of deals with these contractors they probably have work lined up with him for next 6 months at least, they’re giving him great deals since they work with him a lot
Curious- after purchase, taxes, insurance and Reno costs..are these units producing positive cash flow on a monthly basis? If so-how much?
Looks nice. I am glad things are coming along.
I love this show from South Africa
Hi Clayton, Thank you for the great content. I have a problem. I have owned a rental property for 17 years with the same tenants in it. This place is in bad shape and I want to totally refurb it and 1031 out of it into something that makes a better rental. Most flip videos talk about finding the deal and getting funding. I have the property and the money for the rehab, but I have no idea how to find contractors to do this extensive remodel. I guess my question is "How do I find my refurb team?"
Great video but would've liked for you to talk a out the breakdown of all financials so fully understand the ROI
Hi there! :) Have you seen his videos talking about rental ROI? It essentially boils down to rent, taxes, and expenses. From what I can understand, the formula for a rental's ROI is:
ROI = (monthly rent * 7.8) / (home purchase price + all repairs)
I got the 7.6 number by taking out conservatively 35% for taxes. Usually you multiply monthly rent by 12 (to get annual) and then take out the 35%, but I deducted the 35% before doing other maths.
@@jamesmoriarty9603 it depend some on the renter turnover and taxes. In Texas we pay about 4% for taxes and insurance. If you can keep long term tenant happy then it helps a ton.
I like the information Morris! How much did you pay for the property?
This property was around 70K. But I bought it as part of a large package of 10 properties.
@@RedactedNews So, $87,500 roughly, for 2 incomes. That's not bad. Not bad at all!
@@RedactedNews wow, 70k, gotta add one zero to the end to buy the same house in southern California 🤣🤣
Damn you really did the bare minimum of some things. That’s one sad mirror in the restroom. Also that easy bake microwave lol 😆
Love your videos Clay! Is the $17,500 renovation cost how much you paid to renovate both units? Or were they $17500 each to renovate? Thank you!
Did he ever respond?
@@julielu6097 Either the labor is free or those expenses were way higher. I would say 17, 500 a side if I were to guess. But wait...foundation fixed also? New Roof? ...New Furnace...etc etc. I think it turned in to an alligator. Looks nice though.
@@ateesband6116 1500 for 10 windows...not where I live.
@@friendlyfire7861 exactly
where is the cost of the electrical? Flooring? Furnace? Hotwater Tank?
And labor cost?
Great job!
What type of flooring are you using?
oh my word...lol i had close my eyes so i didn't get dizzy...from movement of the 📷
Morris how often do you invest in properties that need the entire subflooring replaced and drywall stripped down to the studs or do you avoid investment properties that need these types of extensive repairs?
great info,thank you! did not include cost of heating/water heater unit if any added to cost overall?
Great video! How were you able to get the 10 vinyl windows and installation for only $1500? Was the installation included with purchasing the windows?
Same question 😉
None of this formula you have going would be working without good contractors that don't up sell you or do crap work that will need to be re-done in a couple of years. Ever consider doing a video on how you are finding these mystic unicorns?
Great video Clayton, this is a thumb up. I live in Maryland, the cost is rather expensive. Would you share your tactic on how to negotiate the renovation projects? Do you hire people full time? Thank you
We'll make a video on this!
How do you get your prices so low for renovation (parts and labor)??
I was thinking the same thing
@@johneybishop9275 me too.
I don’t think he counted hvac furnace and roof
I’m sure it’s area specific but I know I probably couldn’t get those rehab numbers even doing the work myself
How was completely new siding only 4k? I guess this was cheaper in 2019, but your interior renovation of 8k is crazy too. Prices have really gone up an absurd amount. I might be closing on a duplex and it needs a little bit of work. But nowdays, construction is just so outrageous how is a beginner investor supposed to make things work when your paying 2-3 times more than project costs from 3-4 years prior?!!
Yeah, 10 widows at $1500, no way anyone is paying that (unless they buy the cheapest lowest quality premade windows and install themselves).
Quick question on the cabinet: they look so gorgeous in white for this size of house, modern and visually more spacious than dark colors! But it's easy to get stained also, how do you handle it after first tenant move out?
Especially if first tenant only stay for one or two years. Repainting sounds too pricey, but regular clean might not bring back the original beauty, if tenant does not take good care of it .
white paint is cheap...so is hardware.
How do you find a RELIABLE crew in each different areA? I have plenty of opportunities but I without a trustworthy team this doesn’t work
We will make a video on this! Thank you.
Thank you brother!. Great info. God bless!
I’m glad I stumbled onto your page, great information.
I'm glad too! Happy to have you, John!
I currently own one duplex that needed minor updates and I have been renting it for about 2 years now, I love it. I am in the market for another duplex, anything I should know that I should stay away from? Thank you! Love the videos.
We would love to help you with your second property! morrisinvest.com
Fabulous, I love it. great property.
Thank you!
I really like your videos and your rehabs! I'm starting to invest in properties, and I am wondering where fonyou invest the most. I know that all numbers change from state to state. But here in IN, numbers are getting higher every time and harder to cash flow with the prices getting more expensive every time
Clayton, what has been your experience when it comes to VCT flooring vs. vinyl plank flooring? I'll be closing on 6 properties next week and was planning to use vinyl plank because of the durability. Up until now I always used carpet which was a pain because I had to replace the flooring on each turnover. How many turnovers do your vinyl tiles usually last? Is there a certain product that you like to use?
@Tarzan Tiles chip & crack when something extremely heavy falls on them. I've seen it many times. What if the style & color you pick out is later discountinued? You'd still have to replace the entire floor.
What's the name of the color of the siding? That's very nice and I'd like to use it. Blue is always either too blue or not blue enough and feels gray almost. This is a nice middle ground.
Hi, great video. Thank you for showing us step by step. What should I be ordering if I wanted those basic cabinets and countertops? I see it’s Hampton Bay, but is there a model type I should be asking for rental?
Recaro carseat is the best carzeat ever!!
We're probably going to go for vinyl flooring in the home in Michigan
I close on my first one next week. 🤞🤞
What is the cost to actually buy a property that needs to be renovated ?I'm thinking about purchasing a property in the near future
That’s interior renovation and windows is a steal. Which state is this?
That’s an interesting choice on flooring. Is that the light blue with the small speckles? The tenants don’t find it to be an eyesore? I’ve been wondering what kind of flooring I was going to use and was leaning towards faux wood vinyl but if that stuff works for you then maybe I’ll give it a try. Please let me know!
It's more of a gray/neutral color!
Morris Invest do you have any other videos or maybe photos that I can get a better feel for them?
How much did you buy these properties for?
That's what I like to see... Numbers.
Glad you liked it!
Finishing up a total rehab Inman in Michigan going to do the floors what do you recommend there's hardwood that's not rehireable we have tile in the new kitchen and bath laminate or vinyl what do you think
LVT. Also recommended by Kate Rumson of The Real Houses of Instagram.
Good information!
What do you think about a collateral on to scale up
Hey Mr Morris...what vehicle should i have as a real estate investor? A pick up truck to get supplies? An economical car to zip around..or a luxury car for presentation purposes?
Depends on your needs!
@@RedactedNews i need to save gas..look professional..and be handy...maybe a black platinum ecoboost truck?
do these numbers include labor?
Yes!
@@RedactedNews amazing to get it done that cheap. I can't see how... wow... I would have estimated having to pay a lot more for appliances, repairs, labor...etc...
Is it seriously that cheap to put in new windows??? I’m surprised but very happy to hear that. What’s the catch though?
No catch in chicago we have a window several guys who put new windows in for the same price.
Thanks for the informative video! Do you hire your own subs or have a general contractor do it?
How do you profit from section 8? From my understanding section 8 is government assistant so there rent it half the if not a quarter of the price. Do you get paid by the state? Or is there some type of agreement
So how much is needed or recommended to put into a property to no go overboard on overall cost to benefit? Thanks
I know this is 2 years old but new LVP floors with installation for 1500 sq ft are over $20k in my area. $17k total… how?😭
Hey where do you get the extra money to Renovate your rental properties? Do you get a larger loan to cover the cost of renovation ?
What kind of flooring was that at the end? Didn’t look like luxury vinyl plank.
Great video, thanks for all that info! My fiance and I just bought our first property. It is a 2 unit owner occupied house, we are almost done with reno on the rental. What would you say a solid 3 step plan would be to go from our 2 unit owner occupied house to owning multiple properties? Any input would be greatly appreciated!
Way to go, Timothy & fiance! There are a lot of ways to grow your portfolio, it just depends on your situation. Check out this video: bit.ly/2RjYqf0
I'd like info on the kitchen cabinets and counters. I'm about to redo my rental
Great video , even thou this property has 2 deeds , does that mean you’ll need 2 hard money loans if a beginner were to buy and rehab it ?
Hi, can I ask what areas these properties are in? Mark Berge
How long did the renovation take for internal and exterior? We're about to purchase 2 flat to renovate and rent.
Hi Clayton do you recommend adding concrete to a rental property?
Concrete countertops?
Morris Invest cement on the side ofThe house because it’s mostly dirt and on the front of the house too. However I’m not sure if we should add any more money into this new rental because we already invested about $20,000 including labor what do you recommend? It’s going to be our first rental property we’re in California
Game on!
Looks Great!! You listed the cost of all the renovation except for the cost of hiring a contractor. Do you mind listing that cost as well?
Hi Rhonda! This includes labor costs.
Morris Invest well then, very cool!!! I’m about to open an Airbnb in about a week, tying up loose ends. I’ve bought a $500 program for Dean Graziosi last fall and DID the program with writing notes. I began meeting up with meet up groups in REI and have met some mentors that are going to mentor me one on one at the end of this month in wholesaling RE. About to delve in to buy and holds. I have my eye on 3 homes within a 10 mile range from me. I would LOVE to be mentored by you guys for buy and holds. So I’m going to contact your Co. as you instructed at the end of the video. Thanks for your time.😊
Great budgets with your renovations. I do one third of the actual work on my Rentals ie, hot water heaters, cabinets, floors an new electrical panels and drop ceilings in order to fix any leaks quickly and my budget was about 75 % of yours. You did great for not doing any work yourself lol.
Thank you, Frank! Where are you investing?
What kind of cabinets you recommend on a investment property? Big box store or custom made ?
Great video. Your newest subscriber. :)
Hey thanks! Glad to have you here.
Did they finish the sheetrock work before electric? If so, do they have to do any rework on the walls?
To paint the interior of a multi family I bought the painters wanted to charge me $6000 to paint the walls all the same color. In what state are these contractors your working in?
This was NJ!
Any updates on a comparison between purchase price and appraisal value after work has been done?
was that a RECARO baby seat!!!!!! lol NICE!!!!!
Good eye! Yes.
Im trying to work on renovating a house my granddad used to own he got really sick and lost the ability to take care of his properties . If you could give me some pointers that would be great so I can get started
I am curious as to how the entire Renovatuon cost 18,000. Rounding up? When I ask for a small 10x10 kitchen remodeled I have quotes for the basics for 19,000. I have another property that needs renovation for rental so I’m believing when you renovate you get more bang for your buck. So my question is how do you get a contractor to do all the renovations for that price point? Do you purchase your supplies and that’s really labor? The 18,000.???
How were you able to get 10 windows for $1500?? I lived in Jersey and 17k for all that work seems very low but amazing find. Would you mind sharing your contractor's information?
I need to raise my rent up
Not sure where this property is located, which will of course drive the rehab costs depending on the market, but the rehab costs that were shown look like fantasy land prices for my market. $8K for the entire interior rehab? Where I'm at that wouldn't even cover the kitchen rehab alone. I'm sure that it likely comes down to volume discounting with contractors that you use regularly, but the contractors in my area are all so busy that they won't even talk to you or show up unless it's a job that they can price gouge on.
What type of floors do you use for your rentals?
22:30 time he says the rents. $950 per side
Hey Clayton. Good luck with the Section 8 low life’s! Been there done that! Rather do a root canal without novacane on myself before I EVER deal with HUD and section 8 dirtbags ever again! Better you than me! Enjoy!
Old video, new day!
MrGe44 is this an old video???? How long ago? Is this damage control?
Yes it is I saw it a few months ago?
Michael Bruce what do you mean when you say "Damage Control"?
Sean McIntire hey Sean why not?
Where the HECK do you get 10 CUSTOM windows for $150 apiece? I can’t get STANDARD windows for less than $200 around here!
Just curious, why use carpet at all?
Where I live 8k would barely cover painting the inside. Your costs for construction are crazy cheap.
What kind of countertops did you use?
Its February? That explains how he was able to do a before and after
How much did you pay for the workers or contractor?
Any trim work done on that roof at min 19 where your waiting for the tenant to move into? You can see it's not finished off well..
Yes that still needed finishing along with a few other small punch items.