First Investment Property Advice???

Question

My wife and I are purchasing our first investment property in Tavares, FL with a bank statement loan through Sprout Mortgage. (fingers crossed closing date is March 4th).  The home appraised for exactly what we offered and inspection report came back fairly clean. We will try to negotiate for sellers credits for a new water heater, and an electric panel update.

Can anyone share some advice when it comes to:

1. Negotiation tactics for sellers credits

2. Renovation tips? *

*We plan to completely gut and remodel the kitchen. Once we secure the home we'll get 5+ quotes from contractors on the job and will give it to the one who can promise the fastest finish time at a competitive price.

Thanks in advance!

Sammie Baker · Answer

@Bob Okenwa didn't think to just paint the tile. Great $ saving tip, thank you!! I'll do the electric panel research now.

Thanks again!

Bob Okenwa · Answer

@Sammie Baker

I can't say how much an electrical panel will cost you as the range can be pretty diverse across the nation. It may be $2500 or it may be $4500.

As for the kitchen, it doesn't need much. You're already doing the appliances (saving the fridge), cabinets, and counters. I'd replace the discolored light switch and cover and maybe reglaze the backsplash a bright white. I'd hire someone to come clean the grout as well.

Sammie Baker · Answer

@Bob Okenwa Thanks for your feedback! Yes, my realtor has been very responsive and vocal about everything. We sent him the list of things to get fixed with estimates. I'm not sure the cost of a new electric panel and I'm sure it's all a case by case cost.

I have attached pictures of the current kitchen. I plan to salvage the fridge, update to stainless steel and update everything with white shaker cabinets and a tier one quarts or granite.

Bob Okenwa · Answer

@Sammie Baker

1. Your realtor should be able to help you with this. Pointing out what is broken/defective and then informing the seller of the price to repair it is what usually happens to get a price reduction or seller credit

2. Not enough info or pictures to really give tips on renovations. This would ultimately depend on what kind of rental you're trying to make it into and the grade of neighborhood and tenant. Ultimately, making the property clean and habitable while trying to keep the costs down is good enough for most rentals. Don't overthink or overdo the remodel for your area.