What 5 Plumber Visits Taught Me About a Leaky Kitchen Sink

We’ve all been there – the moment you realize there’s a little puddle forming under your sink. After the deep sigh, you start to try to troubleshoot. Is it the handsprayer? Did we simply splash too much water near the fixture with that big dinner cleanup last night? Or could it be something much worse, like the pipes failing? Unfortunately, leaks can be elusive and troubleshooting can sometimes take weeks to figure out what the real issue is. If you’re like me, I don’t want to call a plumber or handyperson right away in case it’s an easy fix. So, I throw a dishtowel (and eventually a tupperware after the dishtowel starts to soak daily) down there while I observe. In this case, after about six disproven theories and four weeks, it was time to call in a specialist. OK, I’ll admit that I started with a handyperson which turned out to be a dead end – and THEN I called a Plumber. After five visits from two different plumbers, here’s what I learned:

1. Leaks can be elusive. They can be hard to recreate when a plumber is present. If possible, try to take a video of the active leak using your phone with flash on.

2. Troubleshoot and present a few theories. Since you use it everyday and are the one observing the leak, you’re going to have a better idea of what might be going wrong.

3. Document as you go. I found that by the fourth visit, it was tough to recall all of the details, what we’d already tried and what could still be causing the issue. If I jotted down a few notes as I went, it would have made things easier to summarize.

4. Hand sprayers are notorious for leaking. Especially side-sprayers vs sprayers built into the head. Side sprayers tend to allow water to drip down the line when putting them back in their mount. We ended up capping our side sprayer and moving to a fixture that has the sprayer built in. Much more usable and any water drips directly into the sink.

5. Rejuvenation plumbing fixtures don’t last and they don’t stand behind their products. Controversial, I’m sure. But once I accepted that the issue was our fixture, I looked into replacing it with the same, updated model from Rejuvenation – even though I felt like they didn’t last, the design is so good. Not only was it 4X as much as the Moen fixture we went with, but it would have taken two months to arrive and they didn’t offer returns. Their customer service, in my experience, is also lacking.

6. Many sprayer outlet lines are missing a rubber gasket under the cap. It will eventually fail and cause a leak. One of the three (truly wonderful) plumbers we had out has a background in commercial plumbing. He’d installed hundred of fixtures for large office and apartment buildings and saw this issue time and time again. Easy one to add to your troubleshooting theory list for the future.

One more parting thought: home warranties can be worth it if you have an older system (ie: older plumbing, late ‘90s AC, etc). Make sure you select the right coverage (or ask your realtor). Also, plumbers, contractors and specialists deserve respect and patience; we’re all human and we’re all doing our best.

If you’re dealing with a house headache and need advice or contractor recommendations – don’t hesitate to reach out. I’m happy to help you strategize, troubleshoot and call in expert support when needed. You can reach me at 971.371.0203 or @kcb_portland.

Real Estate Investment 101: Differentiating CapEx from Maintenance

Are you diving into the world of real estate investment? If so, understanding the crucial difference between capital expenditures (CapEx) and maintenance is key to your success. In this comprehensive guide, we’ll break down these terms, show you how to calculate them, and teach you how to forecast them when analyzing potential deals. Let’s get started!

What Are Capital Expenditures and Maintenance?

Capital Expenditures (CapEx)

CapEx refers to significant, long-term investments made to improve or increase the value of a rental property. These are typically big-ticket items such as:

  • Roof replacement
  • HVAC system upgrades
  • Major plumbing or electrical renovations

Maintenance

Maintenance involves routine tasks that keep the property in optimal condition. These are usually more frequent and less costly expenses, including:

  • Regular lawn care and landscaping
  • Exterior cleaning and power washing
  • Appliance repairs (e.g., fixing a leaky dishwasher)

How to Factor CapEx and Maintenance into Your Deal Analysis

When evaluating potential real estate investments, it’s crucial to distinguish between CapEx and maintenance. Here’s a step-by-step approach:

Analyzing Capital Expenditures

  1. Assess Major Systems: Thoroughly inspect the roof, water heater, HVAC system, plumbing, and electrical components. Evaluate their current condition and estimated remaining lifespan.
  2. Calculate Costs: As a rule of thumb, CapEx should account for 2-7% of the property’s value. For properties requiring significant updates, lean towards the higher end of this range.
  3. Forecast Future Needs: For properties in excellent condition or those recently renovated, you can reasonably budget a lower CapEx percentage.

Estimating Maintenance Costs

  1. Evaluate Property Condition: Look for signs of wear and tear, older appliances, and the overall state of the property.
  2. Estimate Monthly Expenses: Maintenance costs typically range from 2-5% of the gross rent. Larger properties with extensive landscaping or amenities might incur higher maintenance costs.

Building Your Reserve Funds: How Much Should You Set Aside?

The amount you allocate to reserve funds depends on your risk tolerance:

  • Conservative Investors: Aim for 6-12 months of reserve funds to cover potential expenses.
  • More Aggressive Investors: A 3-month reserve fund may suffice if you have additional income streams or savings to cover unexpected costs.

Mastering CapEx Calculations

For a detailed understanding of CapEx, create a spreadsheet using this formula:

Monthly Cost = Replacement Cost / Lifespan (in years) x 12
This formula helps you determine the monthly amount to set aside for each major expense. For more accurate estimates, consult with a general contractor or your real estate agent.

Pro Tips for Savvy Real Estate Investors

  1. Patience Pays Off: It typically takes 3-5 years for a rental property to stabilize, allowing you to understand its true maintenance costs.
  2. Avoid Analysis Paralysis: While it’s important to dive into details, remember to step back and view the big picture. Ensure your investments align with your long-term financial goals.
  3. Organize Your Finances: Initially, you can combine CapEx and maintenance funds into one account. As your portfolio grows, consider consulting a CPA for a more sophisticated accounting system.

Wrapping Up: The Key to Successful Real Estate Investing

Understanding the nuances between CapEx and maintenance is crucial for effective property management and investment planning. By accurately forecasting these expenses, you’ll make more informed decisions and build a robust real estate portfolio that stands the test of time.

If you have any questions about buying a home or need more personalized advice, feel free to reach out to me. Connect with me on YouTube, Instagram, or Facebook.

For a more detailed consultation or to get started on your home buying journey, schedule a free strategy session here. You can also access my Free Buyer’s Guide to help you through every step of the process here.