Implications of repair allowance

2 Replies

I am planning on selling my SFR rental. I am looking into making some repairs and then offering an allowance for new flooring and appliances, while listing a higher asking price to make up the difference. Has this strategy worked for anyone to save time, money, and labor? Are there tax implications with a higher sale price but the loss of the allowance? Thank you, John

For a sale to a homeowner, I would go ahead and buy and install the flooring and appliances.  Even with an allowance, some buyers won't be able to picture how awesome the kitchen will look with stainless appliances, new flooring, etc.  Plus people like 'move in ready'.

If you're selling to an investor, it's probably less needed.  They can then handle the hassle of it.

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