i am in the process of buying my first rental. i am getting the washer and dryer in the transaction, but no fridge.
my main question is, should i buy a new or used fridge for the tenants? i have been told not to let the tenants use their own appliances because many times the tenants will damage the floor or walls when moving the appliances.
the house was listed at $270K, i offered $265K, seller pays $8K closing costs, i get the washer/dryer, i get a one year warranty.
the seller agreed to the above offer. comps run $263K-$270K.
my main question is, should i buy a new or used fridge for the tenants?
I would say new. I just did this for a house a have. A new one, with side-by-side doors, ice/water in the door, etc., costs about $525. I could have saved a couple hundred by going used, but I'm planning on holding this place long-term. If the refrigerator breaks, how much is it going to cost to have someone come in to repair it? Also, how long will the used one last? Wear and tear on these things is tough with tenants (so my new one will become a "used" one pretty soon) but I still think it was a better choice to go new. In your case it may depend on the condition of the other appliances, too. If everything else is new (or looks nearly new) you'd probably want to match that to keep the newer feel. If the rest of the kitchen is falling apart, a new one may not be a great investment. My place looks nicer than a lot of the rentals in the neighborhood, so I can get a little bet rent and I can be a little more selective when it comes to choosing tenants.
Even though bargains can be had in Vegas, unless your down is 40-50%, you will be in the red negative every month, probably several hundred dollars.
Yes you're probably right. But you're also pouring salt in wounds that he might not even see yet. :lol:
You say this is a house so I would probably just buy a new fridge. I mean you spent $265K for a rental... don't you don't want to pay an extra $265 for new instead of used? Plus there will be fewer headaches for maintenance.
Buying a new fridge vs. a used fridge depends on your cash flow situation as well as the personality of the renters. You surely want to create positive cash flow. It isn't wise to make expenses that are not covered by the positive income that your rental unit produces. Also you may find a used fridge that serves the purpose well enough .
I'm betting that this rental will bleed a LOT of cash! I would certainly buy a used refrigerator to put in the rental. You can ofter buy a used refrigerator that looks new and will work for many years. I almost never have a refrigerator that goes bad due to age - they go bad because tenants are idiots and tear them up!
This is a BUSINESS and the purpose of a business is to MAKE MONEY!
How much are you going to get for rent? Hopefully, somewhere up close to $4000 a month.
A new fridge will be used after the first tenant. Are you going to replace the appliances between tenants? Buy a decent looking used fridge. When it croaks (or, the tenants steal it), but another used one.
I totally glossed over the fact you're paying retail. Don't do this! Its a bad deal. You're paying retail for a property that's almost certainly going to lose money each month and in an area (Las Vegas, I assume) where there's likely to be more price declines.