Each investment property that you purchase will be in different conditions, ranging from needing next to nothing done to being a money pit. The top priority is to get the house to be move in ready and in great condition quickly so you can rent it out and start getting money coming in. Don’t over improve for the area; make sure to reference other houses in the area. We covered this in the Fix manual more thoroughly as to having pre-selected paint colors, fixtures, kitchen, and bathroom materials to standardize as much as possible. If you can warehouse materials in a garage or small warehouse then you can buy these items in bulk saving even more money. If you see a great deal on tile, or close out materials etc., buy as much as you can. Spend some time at Home Depot researching commonly used items and making some decisions so you don’t have to do it every single time you buy and fix a house. This will save you time- which in the end saves you money!
Tips for Making the Right Repairs on Your Rental:
- Granite or lower grade countertops. Keep in mind that you might have to replace lower grade countertops every few years or so making granite a better and cheaper longer term choice.
- Carpets verses refinishing the hardwoods. If you refinish the hardwoods every time a tenant moves out then you won’t have anything left, therefore most landlords will put carpet over pre-existing hardwood floors to make it more durable and easier to replace later.
- Ceramic tiles versus linoleum. Ceramic tile is more durable and more desirable by most. While linoleum is less costly if it has one tear or rip then it has to be replaced.
- Apartment grade appliances. Don’t go all out and spend a large budget on appliances, keep it simple and go for the cheaper models.
In general buy affordable and inexpensive durable items that will last, cutting down on repair costs both now and in the future. Understand that wear-and-tear will be part of the rental property experience, and consider the value of existing items when determining your deposit amount.