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New construction rental home tips/ideas

1,878 Views | 17 Replies | Last: 5 yr ago by grizzo
Cadet05
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AG
Looking for some ideas from rental owners on what they wish they had known if building new construction rental homes. Such as floorplans, materials that hold up to hard tenant living, easy maintenance, increase return, etc. I haven't been able to find anything like this on Google and figure there are a bunch of property owners here. Thanks in advance!

Edit to add: looking to build three single-family dwellings. Two bedroom and one bath. Location is rural Texas with rental rates in the $800 to $900 range. Bills not included.
SoTheySay
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S
Not an owner but an agent - no carpet and no flat paint.
Cadet05
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AG
Thinking about stained concrete floors. I'll add the paint note to the list. Thanks!
Diggity
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AG
Tile is probably a better idea. Stained concrete will have to be re-stained every few years or it looks like crap.
evestor1
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my dad has always said a CMU house with concrete floors and concrete counter tops will be desirable forever.


Renters will want certain items such as tile floors (use wood look) and granite. The granite is a cheap upgrade...the tile floor is not cheap.



At that rental rate I would build into the lease that renter is responsible for first $250 of each repair.
Cadet05
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AG
Any experience with carpet tiles in the bedrooms?
gig em 02
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I'd go 3/2 and cheap wood tile/laminate flooring through whole house. Good luck!
hopeandrealchange
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I would stay away from any laminate flooring. Renters seem to have lots of water leaks or overflowing toilets on a regular basis. Water and laminate flooring do not get along.
Over the past 5 years we have put vinyl plank flooring in all of our units. It is almost bulletproof. And easy to maintain.
CS78
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hopeandrealchange said:


Over the past 5 years we have put vinyl plank flooring in all of our units. It is almost bulletproof. And easy to maintain.
That's all I do now. Tile can turn in to a nightmare if you're in an area with foundations that like to move.
IrishTxAggie
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AG
One bathrooms are huge turnoffs typically.
Cadet05
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AG
My area has a ton of oilfield workers looking for housing. Not interested in families with kids. Only have .5 acre to build. 3 lots total.
Shooter McGavin
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AG
Cadet05 said:

My area has a ton of oilfield workers looking for housing. Not interested in families with kids. Only have .5 acre to build. 3 lots total.


Brother-in-law has lots of rentals in area with oilfield employees as clientele. Obviously very cyclical.

One day full, next day lots of sudden vacancies.
jaggiemaggie
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AG
Just curious how much are you gonna be able to build each house?
Cadet05
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AG
About $50k each. I'll be doing some of the work myself.
jt2hunt
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AG
Incredibly low building price

I would do stained concrete.
Does the market support the rents without the oil play?
All in for 50k each? Paying cash or financing?
2400 month in rents will be some really nice cash flow.
What is your expected cash on cash return?
Cadet05
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AG
I'll do the insulation, wiring, plumbing, and painting myself. Work in construction so I have access to subcontractors at steep discounts. Simple rectangular homes with gable roofs and metal roofing. I'm not worried about the homes staying rented. The local market is in dire need of housing. My bank quoted me a 15 year construction loan at 5.9% interest that should get me a note of less than $2000 with insurance and property taxes escrowed. I'm purchasing the land with cash, but the bank says I can use the land as my portion of the equity in the loan.

Estimated cash on cash return is 17% with 11 month occupancy
jaggiemaggie
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AG
Pecos ?
AggieAces06
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AG
I'll add another vote to the vinyl plank flooring. We used a peel and stick and installed it ourselves. It sticks to itself, so you can float the floor if you might have foundation issues. If one plank got damaged you could cut that one out and replace it with a new one. Easy to clean as well.
grizzo
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AG
VINYL PLANK FLOORING - Another vote.

I was unsure about it until my appliance delivery destroyed a plank. Pulling it up and replacing it was an absolute breeze. Easiest way to care for a floor.
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