How far to go with rentals?

3 Replies

So me and my wife have been doing rental properties for 3 years and 3 months now. Usually in the beginning i was doing bare minimum pretty much to get then rented out which realistically most of them have payed for themselves. But maybe holding us back a little bit from really growing with now 1 duplex and 9 SFH’s. Going to purchase more and now stuck fixing up the older ones because really didnt do them right and tight in the beginning so half way through this business ive decided to start doing everything really nice and right and tight. Trying to make them bulletproof and get good tenants in place. From really just decking them out and doing completely right in the beginning. Obviously more money but i think will pay off in long run. Being i wont have to touch them except minor touch ups for say 15-30 years. Whats the right way to approach this? So for example my first ever purchase was a duplex i bought for $16,000 and had $21,000 all into and rented each side for $650 and really it payed for it self over the 3 year period. But now wish just would have did it right and made tight in beginning. One side we did and other was just a mess and still rented out and made are money back. So i believe now just start putting money up front making them really nice and bulletproof to continue moving forward and stop me from holding me back. Thoughts please?

If your properties have paid for themselves I'd say you're safe now to upgrade. You've basically got all of your capital out of the deal at this point. Go ahead and make them nice - you can probably increase your rents somewhat when you do. Good mechanical systems, plumbing, electric, kitchens and baths.

I think you did it the right way but now its time to fix them the right way and do so moving forward. It allowed you to grow much quicker so it was a good thing at the time.

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