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Upgrades Vs Home Improvements In Low Income Rentals

by Lisa Phillips on May 11, 2014 · 4 comments

  
Post image for Upgrades Vs Home Improvements In Low Income Rentals

This is part 2 of the series, “I’m not going to live there so I’m not going to pay for ______.”

As new investors, especially in low income neighborhoods there is a mindset that some people suffer from called the “I’m not going to live here” mindset.

There can be times when it comes to spending money on a renovation, where this is a perfectly valid mindset but many times it can lead new investors to giving a subpar renovation, thus attracting subpar tenants.

Related: Have Some Pride in Your Low Income Rentals!

Part 2 of the series focuses on some strategic times when this mindset can do more harm than good when it comes to capital repairs and how resetting your mindset to view every expenditure through defraying long term maintenance costs and protecting your asset, should be the ultimate determining factor for what to spend your money on for renovations, especially for buy and hold investors.

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{ 4 comments… read them below or add one }

Eric May 11, 2014 at 9:39 pm

I agree. Any maintenance being deferred that causes additional costs, you need to at least stop the damage. I generally do not do low income, but “Industrial Strength but cheap” is a good plan to have. Tile is an example of that…

I do a lot of preventative maintenance in my own rentals, because I can do it on my schedule, not when it breaks.

Everything should function, at least the way it was when the renter looked at it.

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Lisa Phillips May 12, 2014 at 8:30 am

This may be obvious to more experienced investors, but I cringe when repairs like this don’t look at the capital improvement to their investment, and only at the fact they’re not going to live there, so they are not going to spend any more money. Thank you, Eric!

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Mark AW May 15, 2014 at 12:32 pm

Lisa,
Is there any way to add a transcript below the video?
Thanks,
Mark

Reply

Lisa Phillips May 16, 2014 at 8:12 am

Hi There!
I have used the closed captioning on Youtube, and it is excellent. You can run it and it does a great job of clearly getting every word, real time. Transcription services are a great thing, but I have to rely on the Closed Captions for now. I really hope that helps,

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