We are looking at a $1.4M rehab, and so far the bidding is extremely competitive. We've come under budget by significant margins on paint and landscape. The HVAC is on budget, and so are the flooring, cabinets, countertops, and roofs.
All and all, pretty good so far. The one item we fudged up on are the appliances. We are using stainless, but our bids are coming in about $240 per unit higher. Home Depot where we are buying lots of stuff because they are so competitive (they kill competition on cabinets) is actually the weakest appliance bid we have. But, even the distributors are struggling with our expectations.
I am not sure what gives. Did the prices go up in the last few months?
More importantly, does anyone have a referral to share? I am trying to get close to $1,400 on fridge, range, microwave, and dishwasher - my best bid is almost $1,600.
Investor · Colorado Springs, CO · Member since 2016 · 10 posts · 18 votes
8y
@Ben Leybovich Know you mentioned stainless steel appliances and I love the look myself. Had my eyes opened the other day though on a new apartment bus tour I went on and saw many of them going with black appliances. When asked for the reasoning they all came back with the same thing and that was that stainless looks great but stainless shows every little scratch...especially with the fridge magnets. Consensus was same rents with black and less maintenance costs and just look better over time. I know black tends to be a bit lower in cost so this may be of help...
Rental Property Investor · Fort Wayne, IN · Member since 2016 · 258 posts · 177 votes
8y
@Ben Leybovich Congratulations for the new project .Have you tried ABC warehouse because when we were doing flips we used to buy from them and they would beat everyone ‘s price I. The city but I have not bought recently because we stopped flipping and moved to Multifamily.
Rental Property Investor · Denver, CO · Member since 2018 · 21 posts · 12 votes
8y
Piggybacking on your topic, curious on opinions on if it is worthwhile to purchase extended warranties for appliances in your units? Or is it better to just rely on a good handyman or repair person on staff/retainer/rolodex.
As @Joe Splitrock said, I have found that the adage of "they don't make them like they used to" seems to apply to most mechanical and electrical devices these days. When researching my own fridge a few years ago, I was dismayed to see that initial failure rate on lots of new fridge's seems to run pretty high these days. I imagine someone purchasing this many units can probably just return the faulty ones for replacements pretty easy within the first few years in order to preserve goodwill for future bulk orders. But what about us little guys only buying a few times a year?
Piggybacking on your topic, curious on opinions on if it is worthwhile to purchase extended warranties for appliances in your units? Or is it better to just rely on a good handyman or repair person on staff/retainer/rolodex.
As @Joe Splitrock said, I have found that the adage of "they don't make them like they used to" seems to apply to most mechanical and electrical devices these days. When researching my own fridge a few years ago, I was dismayed to see that initial failure rate on lots of new fridge's seems to run pretty high these days. I imagine someone purchasing this many units can probably just return the faulty ones for replacements pretty easy within the first few years in order to preserve goodwill for future bulk orders. But what about us little guys only buying a few times a year?
Instead of an extended warranty for each appliance, I know some investors will get a home warranty on SFH/MFs so that way there's coverage on more than just appliances. I know home warranties are hit or miss but every layer of protection helps. I have no direct experience with this and don't know if home warranties are available for larger than a fourplex.
Piggybacking on your topic, curious on opinions on if it is worthwhile to purchase extended warranties for appliances in your units? Or is it better to just rely on a good handyman or repair person on staff/retainer/rolodex.
As @Joe Splitrock said, I have found that the adage of "they don't make them like they used to" seems to apply to most mechanical and electrical devices these days. When researching my own fridge a few years ago, I was dismayed to see that initial failure rate on lots of new fridge's seems to run pretty high these days. I imagine someone purchasing this many units can probably just return the faulty ones for replacements pretty easy within the first few years in order to preserve goodwill for future bulk orders. But what about us little guys only buying a few times a year?
Instead of an extended warranty for each appliance, I know some investors will get a home warranty on SFH/MFs so that way there's coverage on more than just appliances. I know home warranties are hit or miss but every layer of protection helps. I have no direct experience with this and don't know if home warranties are available for larger than a fourplex.
I was thinking more if the appliance dealer won't go lower on price, see if they will throw in an extended warranty for free. I would not pay for a home warranty. They are overpriced and it is hard to place claims. They often make it difficult to get people out quickly, so owners are sometimes stuck paying out of pocket.
I have sold warranties at appliance stores and I can assure you warranties are pure profit. Claim rates are very low. You are better putting your warranty money in a bank account.
Even when it comes to insurance, I recommend largest possible deductible to save on the premium. If you get large enough, you can even look at self insure options.
Rental Property Investor · Yorba Linda, CA · Member since 2013 · 100 posts · 65 votes
8y
I don't know if this has been touched on yet but candidly I, for my business, wouldn't be too concerned about the the price per unit and more concerned about the delivery and warranty items. I assume you are not buying 98 appliances at one time and then storing those units on-site. I presume you are buying as you need and then those units are being delivered and then installed, as needed when needed... the supply chain would be most important for me.
Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
8y
Stainless steel my ***! The biggest oxymoron since jumbo shrimp and reality TV! You only have to look at such appliances and they get a stain. However, with that said, have you tried HD Supply? They usually have great prices on bulk purchasers. Try to speak to one of their regional account managers. https://hdsupplysolutions.com/shop/c/appliances-00-15. Also, you gotta figure these guys would come down on their price for 98 units: https://www.abt.com/packages/87941/Frigidaire-Stainless-Steel-Top-Freezer-Refrigerator-Kitchen-Package-with-Gas-Range.html
Beloit, WI · Member since 2016 · 100 posts · 40 votes
8y
I don't know if it's nationwide, but Menards usually has good prices. My sister shops there for her renovations. She's got their credit card and tries to do most of her shopping when they have an 11% rebate.
If this isn't an option, I'd call the appliance companies to try to negotiate a discount.
@Ben Leybovich
What about “Black Friday” specials? Perhaps if there’s a limit on each item, have several people order. I always see good deals then. Just throwing a suggestion!
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
8y
We were shopping for appliances for a 124 unit property in Houston.
We decided not to go with "stainless" (really silver and black) due to the price and potential care issues and the market does not have a premium for these.
We got a black appliance package for under $1100.
Personally, I would stay away from refrigerators with ice makers as they cause more maintenance issues in the long run.