OfflineI have purchased properties that I was going to rent out to tenants and use as a passive income source or as a “cash flow” property and there are definitely different things that you will want to consider as you are getting a property ready for an investor compared to getting a property for you to move into. Renters are inherently not going to treat the property that they are renting from you like they would treat a property if it was their own. With this in mind you want to go for “functionality” and not “fancy and pricey”. I would also recommend sticking with colors that are neutral for both carpeting, and painting. Light fixtures are also an area where you can spend way too much money if you are not careful. Do your research as you are buying items for the houses like light fixtures and for faucets, toilets etc. To give you an example, I found a kitchen sink faucet that we liked and it ended up being $234 from one of the “Home Supply” stores. I ended up returning it in its box 2 days later because I found the exact faucet, including the same model number and the same brand name for just under $79. No Kidding! I was amazed. It was brand new in the exact box and worked perfectly. Wow what a savings on just one faucet. Using some of the popular websites where you can purchase just about anything you want to including light fixtures and bath and kitchen faucets can really save you a lot of money. I did the same thing with an entry chandelier, and found the one that I like at the local retail chain, and I found the exact fixture, brand name and all on the internet for 40% less. And I didn’t have to pay any sales tax on the item because it was an out of state transaction so that saved me an additional 7%. These types of savings can add up quickly and can increase your profits greatly on each deal that you work. Always shop around. Always ask if different stores price match. And when all else fails, find it on the internet. The likely hood is that you will be able to find it for quite a bit less than purchasing it through retail sores. Do what I do and get out there and do everything you can do to increase your profits. BE SMART!
MWALTON,
Hey that sounds like great advice for all of us. Would you mind posting those cheap web addresses or the names of the cheaper stores that you found your hardware in please? That might help save the rest of us some time and money.
Again thanks for the tips, help us out with a bit more on specifics if you can.
Thanks and good luck man,
FOAMC
Failure to plan is planning to fail.....
Very Smart. Thank you for the tip.
LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
I'll be sure to pass this info on to rehab investors. In case you don't already know if there is a Habitat for Humanity store in your area there are some great prices there too. Check the store hours before going to the store since it is run by volunteers and changes sometimes without notice. The money they make from their sales supports a good cause.
Lea
SPR Property Solutions, LLC
Being a newbie I am unsure as to how this 'tip' may also be a good one to consider when renting BUT! LOL! Always a but now isn't there?
Keep in mind this is coming from a person who has rented her entire adult life! I do not know one single person who rents a decent home that does not also dream about the possibility of owning it! Part of our game plan idea is to provide decent and affordable housing where we actually make a profit AND turn renters into home owners!
Our idea with that is to use good materials such as your example of purchasing a quality faucet without spending a ton of money. In addition to neutral colors and flooring that will go with everything. We are planning on creating a clause in our lease agreements that would state something to the effect of: If the renter makes his/her rent payments on time and passes yearly inspections (gotta make sure they aren't destroying the place!) In five years time (maybe a three year time frame were still thinking on this one) the money received as rent will be considered down payment and the renter would now have the choice to buy the property in which they live!
We thought it would be a wonderful way to keep our rental properties in top shape AND give hope and something to work towards for our renters!
Now I have no idea if this is a good plan or not. As I stated we are newbies. However as a renter myself I know any lease like that I would be VERY interested in!
You can't save the world but you can offer a hand up to a few along your way.
I most definitely agree with your post. I am a partner in a property management firm here in Los Angeles, and we constantly advise our owners to hold off on the "fancy" upgrades until they are ready to sell. How much more rent can we get for the unit with "Stainless Steel Fixtures Throughout" vs. the unit with "Brand New Fixtures Throughout"? The answer is: not much if any. Just like mwalton said: do what you can do to increase you profits - and expensive upgrades for renters is not in the cards.
Press on, regardless.