New, Used, or Dented Appliances (First Rental)

13 Replies

So I'm less than two weeks away from closing on my first property. It's a wonderful 3/2 in Hueytown, AL just outside of Birmingham/Bessemer area. The deal will be closed with about 25K in instant equity with typical updating repairs. One thing that's not great is the contract stated the seller will be taking all appliances, so needless to say I'm over thinking my next move. It is an FHA loan, so I'm spending the next year living in the property as I fix it up to market standards.

As far as rental appliances in the area, it seems the standard is basic entry level stainless appliances.. but also a lot of outdated stuff too.

My question is, knowing that it will be all be used by the time a tenant gets in there, should I scoop one of the basic $1,999 Frigidaire combo kits, or should I try to go for the discounted scratch and dent stuff assuming it’s not an awful eye sore. Then again, I could shop around for decent used appliances from upgrading homeowners.

What’s the smartest choice here. At the end of the day, I am stressing over a few hundred bucks... but also, every few hundred bucks is money in or out of my pockets.

Thanks so much, and sorry for the rant!

-Jordan Page

Becarful with scratch and dent stuff. The fridge could have been returned because it doesn't work or the ice maker leaks like crazy or in the case of a stove one of the burners don't work or stuff along those lines. You can get awsome deals just be aware of possible problems.

@Jordan Page I'd say look at the used options nearby and compare them to the basic kit. Some places have great refurbished appliances you can purchase with a short warranty attached, but it is often only a 30-day warranty, so it's more of a caveat emptor sort of situation. If you know you're going to take good care of them, it might not be that much more expensive in the long run to just buy the new basic set... especially if this is a nicer home. We have a couple different tiers of finishes we do in our properties, and if it's a nicer one, we ALWAYS buy a brand new stainless set - we get a good discount, though, since we do so many of them. 

Good luck on whatever you decide, sir! :)

I’ve always tended to believe if you provide scratched and dented appliances you’re telling the tenant, scratches and dents happen all the time, don’t bother taking care of this place. 

I’ve always provided new appliances for ten couple hundred extra and have had appliances in like new condition 4-6 years later. The tenant and you both know they were like new when they moved in. 

Plus maybe it rents faster. 

@Jordan Page I usually find that the sales at Lowes and Home Depot are cheaper than the brand combos that they sell as a package or any scratch and dent appliance. I just ordered a range, dishwasher, fridge, and vent hood for $1,490 and that includes the sales tax for my county. They will be mismatched (some GE and some Frigidaire) but they will be all stainless steel which I find in my market, the tenants care about color matching more than brand.

@Bill Brandt that’s a really good point. It makes sense that if you provide dinged appliances, it’s already set in there head that dings are okay.

If it was my personal stuff, I’d go scratch and dent all day, idc. But I should get in the habit now if setting a standard.

@Jordan Page

I made the change about 5 years ago. Every new appliance is stainless. I don’t do any repairs on non-stainless appliances. But then I still do in door ice/water for the faster rental even though 100% of my fridge problems are ice/water related. :-)

@Amy H. Yeah that’s what I’m looking at now and a great point. The appliances I’m looking at from Home Depot right now are at like a 45% discount until tomorrow. $1,799 refrigerator for $997. The same fridge dented is only $100-150 cheaper than that, and doesn’t have a dented handle and giant scuff going down the side. So I feel like I might as well just look new.

Originally posted by @Bill Brandt :

I’ve always tended to believe if you provide scratched and dented appliances you’re telling the tenant, scratches and dents happen all the time, don’t bother taking care of this place. 

I’ve always provided new appliances for ten couple hundred extra and have had appliances in like new condition 4-6 years later. The tenant and you both know they were like new when they moved in. 

Plus maybe it rents faster. 

 Scratch and Dents I buy are usually hidden

I have bought name brand, quality, brand new appliances with minor dents and dings for 40% off & full warranty. I will only accept minor dents, scratches and dings on areas of the appliances that are not visible after installation, such as the sides and back of the unit.  

I stay away from buying used appliances especially refrigerators because the refrigerator is one of the most used items in the home and I wont take a chance on it.  

We have a sears outlet near us that sells new in box models that are 1-4 years old, they just aren’t the latest greatest model. So I can find brand new equipment with warranty at very low prices, and it’s not like dishwasher or laundry center technology has had some kind of quantum leap since 2016. 

@Jordan Page

I do exactly what @Amy H. does. All good stainless steel sets from different manufacturers. Fully stainless and usually the better option in each: electric cooktop instead of coils and 5 burners with heavy grates instead of wire and front load washer dryers. Pays back in many ways: free delivery to my first and second floor duplex kitchens, 1-2 year warranty from manufacturer and credit card, and curb appeal of a sorts since our listing photo is almost always the kitchen.

-Justin

I go with new stainless steel at home depot every time. The cost is so much lower now that it's worth the extra money it makes the kitchen pop.  To me, the savings are tiny if something were to break down bc it was used it would cost me more time to get another one out there. Not worth it.

@Jordan Page Wait for one of the sales at Lowes or HD. They should have one coming up for Labor Day. You can get a basic set of stainless appliances for less than $2k. Going the cheaper route sounds good when you know you will be living there for the first year, but when you move out you want the tenant to have good appliances so you can get top dollar rent.

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