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Can I use rags to apply the stain? One to apply, one to remove excess?
You will need more than one rag to remove excess but yes, you can apply the "stain" with rags.
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Turn off the ac to prevent air movement or just close the vent in the living room, b/c it does blow directly onto the floor. I also have a return near the floor as well. It uptakes air.
Turn it off when you get ready to apply the finish. Keep it on till just before application. When the finish is nearly dry, about three hours, you can turn it on again.
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What pole sander do you use?
I do not use a poler sander. I am a professional and use a flooring buffer designed for use on a floor. However, Traffic does not need lots of between coats sanding. A pole sander would be an inexpensive, option for a DIYer and a smaller floor. Available at most places sheetrock supplies are sold.