hi- I just bought a sfr4/2 in Tempe,az. The goal is to rent itthere for 2 yearsrehab it and then Sell it. The house has a fairly narrow backyard that is basically all patio and pool. The pool pump is shot and the concrete around pool is cracked. Looking at $2,500 in repairs to bring up to speed. I've thought about filling in the pool and having a useable backyard, cost is $5,000
I've gotten 50/50 response from friends and family and wanted to see if I could get some feedback from folks here....fix the pool and keep for $2,500 or so ....or fill in and have a yard for $5,000?
I would think that the pool would greatly improve marketability during both the rental and sell phases.
What do the neighbors have? If neighboring SFRs have pools then you might need one in order to compete for both phases of your plan on this deal.
Have you run ROI for both scenarios?
Consider not being able to predict maintenance costs for the 2 year rental period. Try to predict the cost and factor it into ROI, but aim on the high side just in case. Mitigate during the rental phase by having the tenant pay for regular pool maintenance, otherwise up the rent slightly in order to cover it.
Hi Lauren and Andrew...thanks for reading my post, I have an update on the house/pool situation as it closed last October...after a lot of talks with my folks we decided to keep the pool and repair the cracks, replace the pump, etc. Of course, like any rehab there were issues we didn't see coming...2 fairly large ones came up:
1) I was talked into buying a larger pump by my pool guy because the older broken one was too small for a pool our size. Ok, no big deal, order it right? Well, the new pump arrives and when they go to connect it, the new pool pump will only run on 220v because it's larger than the older one that ran on standard 110v. So now bring in the electrician to dig a trench and run new 220v cables from junction box to the pump EXCEPT by now the pool is disgusting because there's no pump clearing out the water... the city actually can charge a penalty for having a "dark" pool due to safety issues of a kid falling in and no being able to see the bottom...so, we had to drain the pool extra cost about $300 or so if I remember.
2) So now after draining the pool, putting in the new pump with new wiring and re-filling the pool with thousands of gallons of water that isn't free (not too mention I live in CA with the drought and my conscience is screaming at me about the waste)...we find that the pool is constantly being re-filled by the "auto fill"...somewhere, somehow there's a leak and we're wasting even more water and money...so, I had to call in a leak detection specialist who thankfully found the leak at the filter and not in the actual pool itself...Another $1,500 in unexpected costs.
So, long story short, fixing up the pool cost about the same as removing it, refilling with sod, getting a new fence but now we have a nice updated pool and it should help the value a little bit when we go to sell.
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