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STUPID Mistakes ALL Homeowners Make -- DON'T DO THIS!

Jun 04, 2021
The last time I did a video at Lowe's, the video got over two hundred and sixty-seven thousand views, but some people were a little upset because they didn't understand the difference between a newbie and a pro, so today I brought Lauren a pro to help me. except for clarity, today we're going to do a verse from Lord of the Slums, no and if you live in your own house or are thinking about buying your own house, remember that you should want to turn it into a rental in the future and follow these principles . your retirement Laurens is a professional property manager and as a stager she handles all of our rental properties and well she will clarify if I was being a slum landlord or not so go ahead last time at Lowe's We started here in the hardwood section and he said, hey, you know how a lot of people are, well, I want these three $0.50 hardwood floor talls.
stupid mistakes all homeowners make    don t do this
I want

this

hard chestnut, hey messenger, I want

this

for a dollar twenty-eight cents, you know, the bamboo in my house and all these expensive ones. things or they want porcelain tile and I suggested that maybe there are better options, the newbies say I need a wood floor because I will have more wear layers and I will be able to sand it, the pros say I am will buy this luxury vinyl plank that is durable water and scratch resistant and it's only a buck ninety eight, they'll probably get some coupons too so I think that's a general statement for anything you have to consider when it comes to a rental.
stupid mistakes all homeowners make    don t do this

More Interesting Facts About,

stupid mistakes all homeowners make don t do this...

It's the degree of rent, so it's floors, bathrooms, kitchens, whatever it is. In my opinion, there are three levels of what you should ideally look for when renovating your property to be rental grade. There is the next rental grade section, which is your slum landlord. and you don't want to be because you don't want to advertise it to people and then the good tenants will look at your property and think they didn't do a good job renovating, they chose cheap, quality junk and I didn't. I don't want to rent to them because I'm a good tenant and I'd rather have something better.
stupid mistakes all homeowners make    don t do this
There's the sweet spot, which is a very thin little section where you have something that's rental grade but popular and popular. and it also

make

s functional sense and then really anything above that improves too much and is not beneficial for you so don't do it either so there is a small sweet spot that you want to strive for and you know you have to take into account every Every Once you spend a dollar, you expect to

make

at least two dollars back on your rent, so keep that in mind when you're looking around Lowe's and how you want to renovate your property because you don't want it to get too much better. and you don't want to be a slumlord either, there's a really good sweet spot that you should strive for just from perspective and the total cost of the wood flooring material and installing it in California with a contractor that does a great job. probably ten to fourteen dollars a foot, you take a porcelain stoneware like this, where the labor is even more intensive, it can cost ten to fourteen dollars a foot for the material and this can be a little bit cheaper, obviously, the benefit of porcelain.
stupid mistakes all homeowners make    don t do this
It tends to last a little longer but it's not like what do you think Lauren nowadays? Honestly, I'm against that, it's funny because I remember when we bought our first house, I thought, after we had already installed the floor and I wonder why we didn't do the porcelain which would have made a lot more sense, but the luxury vinyl It wasn't fashionable back then and I thought this porcelain makes a lot of sense and you know, you can just use it. and tear it up as much as you want, it's indestructible and it's cool but now I think it's a little out of place and I think luxury vinyl almost looks more like wood than even porcelain, it's not noticeable anymore with those grout lines , yes, and the labor is significantly less expensive, yes, so Lauren here's some $3.00 $0.69 luxury vinyl planks.
I mean, they look pretty good. What do you think of these? It is simply unnecessary. I mean you can really find a good quality look and a good color for $2 to 250. no need to spend too much this is an example of something that would be a slum lord this is $68 per square foot and is an old fashioned color which is just the end result for me, as someone who knows a lot about design, I would say this is going to be a good set, but this is a good color, so if you combine it with the tricks that I use to get between 15 and 17 per percent off my products when I shop at Lowe's, Lowe's becomes a very good place to shop, obviously sometimes there are times when I want to go shopping at a contractor's warehouse, but I check out the real estate investing course because I'm talking about exactly how to set up your discount plan with Lowe's and you can also use some of these tricks for Home Depot or other contracting companies that may be local to you and remember you can get 22 percent off through September 30 .
All in-person courses and events use coupon code 10x Fed Now Lauren. Before I ask you about the rug, I want to know what you think about it sometimes. when we have a plumbing repair that we have to do in a kitchen under, say, a kitchen sink, we can fix the plumbing problem and then there is a little bit of stain or damage left on the actual cabinet, now you have a couple of options that you can break Take out the cabinet, redo it or cut new wood which can often be intensive but to fix small stains and you know small imperfections once the mold is gone once the plumbing has been fixed what is your opinion on just using some small squares of linoleum? 12 by 12 tiles and make this look nice and finished again.
I think people were thinking Oh, covering up mold, no, I mean we do that all the time, it's funny, I mean there's a lot of stuff that happens under the kitchen sink, especially and discoloration or warping when it's removed. mold completely and everything is completely fine I don't see any problem and I think having a clean finish with the small strip of linoleum instead of leaving the wood open even if it is clean and totally fine with lack of mold It would be better to have a small strip of Linoleum must have warping or discoloration just so the tenant has a consistent feel.
Yeah, I mean, you also see this under the laundry room with cabinets, where you open them up and people have spilled out. Clorox and bleach and stuff, it's not even a question of shedding, I don't know, I don't think mold will come close, I mean crows with Clorox, but you know, it's not even a question of that, just create some stains or some problems that can be easily solved. fix instead of replacing the entire cabinet, yes, but what about the carpets? Because sometimes people say, "Oh my God, Kevin, you said to put a rug in your room." the tenant will often do it, if they are really good at you taking care of the carpet everything is fine or if you damage it then it will be out of your security deposit and it is very very easy just remove the carpet and replace the carpet in Instead of this it's like removing linoleum or whatever your tile work is it's a lot more linoleum glue or something new oh my gosh it's so much easier and it's actually weird in my experience removing carpet because you know I qualify to the tenants and then also with every deal you need to have professional carpet cleaning, so usually that doesn't even come into play, but when it does, it's easy, as a clarification, with every carpet that we have, its lifespan It is usually about ten years and if someone had that amount deducted. of the security deposit is considered with the prorated amount of how many years you actually lived in the house and then how many years are left for the reduction of the security deposit.
Yes, exactly like that, for example, if someone lived in a property for two years and they ruined a ten year old carpet because maybe they brought in a dog that wasn't supposed to be there or whatever, then we would deduct eight years from their deposit security to put down a new carpet and guess how fast we can throw it away? new carpet and maybe three hours in a room, so suddenly that time between tenants when there is turnover is also minimized. Oh, tip, when you put carpet in your rentals, make sure whoever you buy the carpet from gives it to you. lifespan of any rug you put down because then you could use it for your security deposit refund, that's true, in other words, hey, what's the lifespan of these rugs here?
It's twelve years, ten years or five years. now Lauren, tell me about colors, what's your favorite rental color? I'm not talking about rental living and usually the lighter one is better to live in because you're going to take care of your own carpet, but when you're dealing with tenants and in a rental property, you want to go to the darker end, you don't want be two ducts where it's like a chocolate, but you also don't want to be two lights where it's almost impossible not to stain, so I would go with, you know, the darker one around this range here maybe maybe these two here is like a little bit darker grayish brown this whole kind of palette so I really wish I had this color rug because it would be a tide This looks a little better and yeah less replacement honestly so now how about something blue or greenish when I deal with new owners and they have a beautiful magenta rug or a beautiful orange wall?
I think about appealing to the masses. Don't think about yourself, think about what you see in model homes, think about what you see. I don't know a luxury house anywhere that you know on the market, they don't have these statement pieces. You should always be very earthy and neutral, and what it is. right now what's popular if you deviate from that you have a very specific funnel of people interested in your product what's your reason what about these ones here that have these two shades this would give it that lighter look and at the same time it would hide more dirt?
Oh my gosh, I prefer the Cheetos which are even better, they're actually more of that special sweet spot I'm talking about because the two shades actually hide stains better now that we were looking at the kind of trimmed lint like carpets. middle grade. but what about something like this? I mean, look at this fancy Berber with the pattern and what's your opinion on that, on the improvements, just a hundred percent on the improvements, that's unnecessary, it's very expensive, why, but I mean, people were like, You know, if not. put the expensive stuff on that I'm a slum lord and I'm not proud of my property oh no, no, this is the difference, this is you being smart, this is not you being, you know a slum lord, there's that sweet spot again, this is the over-enhancement segment and then there's the sweet spot and then there's the slumlord, vein, this is being

stupid

and this is being over-enhancement, the Berber Berber ooh Lauren, what's up with these beautiful plantation shutters here?
By laying down white lines of 2 inch faux wood, everyone is ready, but isn't that being a slumlord? It's not, it's actually still quality work. You're not dealing with those cheap, flimsy, plastic-y things you might like. It's still very good quality, it just hasn't improved too much, that's the place, my goodness, but Lauren, these are automated, why don't you look at how beautiful it is? It's automated, yeah, honestly, I wouldn't even feel good spending that money on my own home. because that's such an over the top upgrade it's so unnecessary 5% off in heaven the card is so good you picked a great card well lauren how about some of these sweet hickory cherry maple cabinets and Lynchburg cherry tree around here and all these other good things, but can I?
We got some of these in our rentals, please no, that would really be an example of overspending. I think you should try at all costs to work with the cabinets you already have and if they are completely trashed then go to HD supplies and get some stock cabinet items and try to paint them white and make it look nice or gray and , as for yeah, any of them and then if you want to deal with the countertops, you should get a white quartz with something like that. the speckled like shiny things, the sparkles or if you can rework what you already have, there are a lot of homes now that have just the basic white square tiles that if you painted the cabinet gray, it could make it look.
Really really cool, shows an example right now Kevin but Lauren, I mean, look, this looks super cool, industrial and modern, we have blue here, we have this sleek one like espresso or this two tone one with the lines and stuff, I mean, these things are going to cost extra money, you know, but I mean, look how cool it looks, yeah, I think about the longevity of these styles, especially if you're talking about the blue, the industrial, the farmhouse style, How long, realistically, will these trends be in style and are you looking forward to ideally having your rentals forever and hopefully you should think about which is the most neutral that will last the longest if you have the blues in the farmhouse and the industrial , we are talking about howtime seven years will simply die much sooner and it is not worth it and speaking of keeping up with trends, it is inevitable that trends change and the ideal is to keep up with them as much as possible and that the longevity of all your cabinets or accessories last as long as possible.
They can but that's just not going to be the case with cabinets especially, you can paint them and change the color, but the best thing is that you can keep up with the trends very easily with lighting or plumbing fixtures, change them and make a whole new look of a rental property that makes it more modern as times change. Keep in mind that it's easy to paint cabinets, but it's much easier to change fixtures, so yes, we have industrial style lighting fixtures in our rentals in the areas that matter. but I'm still not going to put them everywhere because they are expensive, this one is $99, it gets a little pricey.
I like to come, I don't even necessarily do this because this is $34 for a breast light. I know I could get a breast light for about 16 bucks if I can find the 10 pack of the five pack as a quick note, I just think it's funny because you put whatever is most populous in the fixtures, not the industrial one, and when tenants are potential tenants, I literally hear them all. At that moment, oh my God, there are industrial lamps. I love it. I've seen it on HGTV. I literally listened to it and those are the things that give the main impression.
It's like white cabinets in a kitchen, easy to paint. sleek white countertops are easy and cheap. I don't even know and I guess they don't even realize we have blue blood in the rest of us. Well, yes, you put them in some key spots, like on the dining room table or in the kitchen. in the bathroom but then like the random hallway lights there Buble boobies oh my gosh but Lauren can we end up there once we don't even have that new stuff in our own house? First of all, we don't provide washers or dryers for our homes, so if we were, it wouldn't be much cheaper.
It's funny, at the beginning of my career I always used to buy ovens that were of good quality and always had the self-cleaning function. The funny thing is that after years and years of doing this, I realized that the tenants, even with the self-cleaning feature, do not clean the oven after leaving the property and therefore I have to hire my cleaner deep to fix the entire oven. There is dirt inside and then I think why am I paying more for a self-cleaning oven when I could buy one that is still good quality but doesn't have the self-cleaning feature because the tenants don't do it anyway. and then I hire my deep cleaner anyway, so now that brings us to a high quality oven, lack of cleaning option and we saved at least a hundred dollars on the oven purchase, let's find one, oh I found one, Lauren , this is 11:49 look at this, it has like a warming drawer, this is perfect, I mean, this isn't even a drawer, this is just the double oven here, I mean, this is quality, people won't think I'm a, I'm a slumlord, if I understand this, I know.
I wouldn't spend anywhere near a thousand dollars on an oven, that's absurd. I would probably go more towards this here, we're at 719 and then if you have Lowe's for pros, it's more like 600, yeah, yeah, yeah, can we get it? This one costs only $3,200. We can get it? Can we get it at least here in California where I'm from? When you own a house and rent it out, you don't provide the refrigerator that the tenants always have. your own refrigerator, so no, but can we have a proud house? We don't even have that nice thing for our house, why not?
That's just an extremely quick reminder. In fact, you can get heavily discounted items if your floor model and they have a bit. a small dent or a small scratch is a big problem many times, like if you have a side scratch or something it's actually hidden in, like a small wall covering, you can't even see the scratch and you save a lot of money Well, Lauren, another person that I got a lot of flack for was saying "Gee" a lot in a rental property, why are you ripping out all the windows and putting in double pane windows and all this energy efficiency stuff and people like Oh my gosh how could you say not to install energy efficient upgrades, that's extreme, you must hate the environment, which I don't hate the environment, but what is your opinion on all these energy efficient upgrades, the more smarter the boiler, smarter the air conditioning, smarter the double pane windows, when maybe the neighborhood doesn't consider them necessary or the climate doesn't mean they're necessary, what's your opinion on that?
I think it again tells me that that's the category of over-improvement, it's just unnecessary, again there's a fine line between being in that small sweet spot of going to what is rental grade but high quality within that small portion and been over-upgraded and I think having efficient windows and the furnace or whatever is something that a live-in owner might prefer. Instead of putting that up for rent for a great property, do you think people spend too much on the properties they live in because they say things like, well, this is going to be my forever home and I want to be proud of this house?
Do you have an elegant front door? I think people tend to spend too much on those things. Yes, I think it's a combination of knowing it's your own house and wanting to be proud of it, but it's also fun to keep doing it. I think that's the end result and human nature wants to do it. spend and it's fun to have new things, no there's no risk when people spend all this money on extra barn doors or you feel like checking out front doors and things like that you know they're having fun but how much are they really going to spend? they will recover when they go to sell the property or, in the best of cases, rent it in the future.
I mean, you're going to get very little, especially if it's really customized, like colors and things like that, there's a balance because I didn't do it on ours. At home we live in a house that is honestly very dated, maybe 10 years old, and I have a lot of moments where I think, as a designer, I would love to have this color scheme in this kitchen. Look, I would love to replace the granite countertops with, you know, white space, but then I have to constantly remind myself that I shouldn't do that and it's hard, and you know I can do it in a future house, but right now with the way What I feel about this current house, we're not doing it and it's hard, let's turn this into a rental in the future in my mind because it's easy to think I could make this house so beautiful, I can make it look so cool and I would love it so much more if I had this and this and this and this but you have to think about it, okay, sure this isn't our forever home, but I don't know if it would be.
It's going to be hard to improve too much just because we want to spend money on buying more deals that make us more money, so that not only do we end up with more money that we could spend on vacations or whatever, but we're not wasting money on things that have an effect fleeting, that's what I think is the bad thing about excessive enhancements, it's going to look good, you know, you're going to show it to all your friends and stuff when they come over, but the passion for well, I think that although the passion tends to disappear it's like the new phenomenon of the car, action and then it's always going to be like, oh shoot, there's a new trend, it's the robot thing, I don't know, you have no idea what it could be and it's like everything is really sterile. or whatever and then it's like I want it to always be like that, that's the same thing even with fashion, why do you think jean jeans go in and out of styles of being flared pants, skinny jeans, low waist, high waist? everything is changing on purpose because marketing wants you to spend money, you know, I think sometimes people think that when I say, let's try to save money and go for that rental product, they think I'm kind of sneaking around and I'm going to cut back. corners about people's health and safety, you know about plumbing, electrical and the actual systems of the house, what's your response to that slumlord thing?
That's a whole different category when you're a great rental property and you know different degrees of rental qualifications. but honestly, the way we do our rental properties is at the top of that range of really real quality, but not that expensive and still reasonable, and it's not something you have to spend too much on to get this product from luxury because it is unnecessary, but Lauren prefers to be independent. bathtub and rock wall, the thing is if you have a house that claims to be in a luxury area like Beverly Hills where you are totally promoting the house that is luxurious, of course you have to keep up with that standard, but when you talk ya You know, the typical middle class rental, middle of the road, you don't need fancy stuff, it literally doesn't make you any more money on paint colors if you're considering having any other paint color besides an earthy tan, a grayish, you know, of course. light light brown and a white you are wrong, don't do anything more than that because if you are thinking of blues, purples, pinks, reds, any type of color other than the earth tones that I just said, you are going outside that spectrum . and you are reducing your audience for them one in your rental.
If your baseboards are a hundred percent different color and your ceiling needs to be a different color as well, you should have a contrasting white color like Swiss coffee for your baseboards and your ceilings. so this means I'm a slum landlord, not that I keep saying there are different categories of how you should renovate your rental apartment and that's the sweet spot that we're looking for and I think we've really done a good job. So now a lot of people said something like the last thing they said, oh God, yes, a novice buys a house from Kevin and a professional doesn't.
I never want to buy a house from Kevin because they think I'm cutting corners and stuff like that. I think that's very wrong because a professional should buy a wedge deal and you're actually right in that middle ground, so if I had to buy a house that wasn't a wedge deal, I'd buy a house from him. Oh, in other words, if you want something that is ready for a tenant to move in, quality and safe, buy one of my houses that is not overly improved, where I am spending a lot of money on a house, but still Having that newly renovated field is not like a model home where you are overpaying for the property, rather you are buying something that is safe and move in ready, but realistically you shouldn't buy from me because you should be looking for wedge deals like us. teach in the investment course and do these things yourself well, that makes sense now, what about those handymen who take shortcuts on everything and suck and look at the work they do with crooked tiles and faulty electrical systems and things like that ?
It's our problem, yeah, yeah, okay, so I just want to, I just want to make the distinction, we don't do that crap. I've heard you say that, oh my God, if I saw one of our operators do that, it would be like what I like. Literal F, there are so many home inspections I do where I just see can lights attached in the attic and everything looks like spaghetti and it's not nailed down, it's shoddy work and then sure enough the tiles are crooked and stuff like that I. I don't want that either. I've worked for other owners, in fact most of my career I've worked for other owners and I started when I was 19 and now I'm 29 and I've seen so much crap that I've owned.
To deal with I'm 27 I've seen low quality crap oh I've seen so much I mean a lot of people take shortcuts so I understand why people think that and then you know me as the hired property manager. I don't have any authority to recommend anything different and it just is what it is and I have to market it and you know, get the rental price right and whatever, but honestly, it's a lot harder to attract good quality tenants. I am where I am. Quality tennis don't want the crowd, they don't want it, you have to drastically reduce the rent when it sucks, so I'm very grateful that I don't have to work with other people now because I only do our own properties because I'm a mom, so thanks and then when a tenant tells me they're mad at me for something like Sam discriminated and gets credit, I'm going to find out who the landlord is and call them, okay?

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