Video instructions and help with filling out and completing Who Form 5495 Minimizing

Instructions and Help about Who Form 5495 Minimizing

How do you renovate a rental property to minimize your repairs so you're not paying through the nose that's today's video let's dive in hey everyone I'm Clayton Morris I'm the founder of Morris invest on a turnkey real estate provider and I've been a longtime investor for a number of years and I own many many rental properties the key to a successful renovation on a rental property is to minimize the repairs down the road because we're all about cash flow so this whole channel is devoted to helping you create passive income and cash flow right that's why we do what we do here and so if we have that cash flow coming in in the form of rental income do we want to be paying it out to keep fixing stuff windows doors refrigerators god knows what else of course not so how do we minimize our repairs when we're doing our rehab let's say you identify a great property you find a great three-bedroom one-bath house and you're ready to start the renovation it's in a cost you maybe fifteen twenty thousand dollars to do the rehab well what do you do in the property to make sure well here's what we do on our properties let me show you a total disaster of a house that we bought recently this is a typical one of our properties you can see here how much of a disaster it was on the inside right we had ceilings falling in we had terrible flooring you know all everything it was a total gut rehab in the property so when I'm starting with a blank canvas like that what we like to do in all of our properties is simple we want to make sure that the main mechanicals the main systems of the house are fully rock-solid why because when you take care of the roof the windows the plumbing the electrical the furnace and the water heater then you've got a rock-solid house for 15 years minimum right 10 to 15 years depending on the life of the water heater but you really are not going to have repairs to worry about for like 15 years if you really do that type of a rehab so what do I mean by that well let's go through and point by point on the roof so when I buy a rental property if I buy a property and there's another 25 years or 20 years life left in the roof I'm not going to touch it that would be a waste of money but if it needs a new roof I'm going to put a new roof on the property or an overlay so in certain states you're allowed to put a certain number of layers of shingles before you have to completely rip them off and put on a whole new roof so typically it's about three layers you're allowed to put on so if it needs a new overlay put that on new roof done what about Windows if the windows are in great shape there's no need to replace them if they're working and they're fine they keep the insulation of the property but if you're putting new windows in I always put in Pella windows or sometimes Andersen windows in my rental properties you know they're the white vinyl windows and they keep it nice and warm and insulated that way your tenants love it because it's keeping their costs down on their on their heating bill and their air-conditioning bill during the summer windows roof next is the electrical I want to make sure this is the stuff that's not terribly sexy when you're putting together a property right because it's the stuff behind the walls that you don't get to see but it's where you want to spend your most money so if you've got that old knob-and-tube wiring you know what it looks like right if you ever seen an old house there's old knob-and-tube wires and we upgrade to a 200 amp electrical panel on all of our properties so putting in running all new electric through the house and making sure that it's up to code that way you don't have to worry about that house for 40 years when it comes to the electrical panel especially if you're putting in a 200 amp electrical panel sort of future-proof to your house and it's not that much more expensive than putting in a 100 amp electrical panel I would go 200 amps all day long and that's what I do the next thing that we would do in our property if we have to pull out all the old plumbing so if I'm pulling out all the old galvanized pipe I'm going to rip all of that out if there's that PVC pipe you know the white piping if that's in there as well typically we're going to pull that out of the property and I'm going to put in all new brand new Peck's plumbing PE X Y again I can snake this through the rafters it lets me move maneuver and around the house very easily and nicely and if it gets too cold it can swell up like a balloon with bursting that's another benefit of text plumbing you always hear about people in the winter if you know maybe the power is out or they're not living there the house is vacant you know the pipes will burst well it will still happen with text plumbing but not as likely it's able to withstand a lot more of that give and take so we'll put in all new plumbing in the property as well so roof windows plumbing electrical then I'm going to put in a new water heater which are fairly inexpensive but putting in a new water heater ensures that I'm going to get ten years of life out of it on