Do you need a pickup truck for a first rental property

[Denzel Faulken]

Hello everyone,

So me and my wife have 2 older cars both paid off. We were thinking about getting a rental property but also was thinking to upgrade to a pick up truck. We were doing some pricing in about the 30-35 range and we really didn’t want to take out a loan on a truck if we didn’t have to. We are already going to be leveraging for the rental property. So is a truck necessary or needed when having a rental property. I am not planning on doing all the improvements my self planning on hiring contractors but just in case if something arises we wanted one. Please advise.

[Nathan Gesner]

This is an emotional inquiry, not a business decision.

You don't buy equipment based on what you think may happen. You determine a need, then fill it. If intend to hire contractors for work, you won't be doing much around the property. Even when you do, the trunk of a car or a small utility trailer should be sufficient.

Let's say you needed a pickup once a month to haul some really big, heavy items. Truck rentals are pretty cheap, but let's assume it cost you $200 per rental. That's $2,400 a year. It would take about 17 years to justify the cost of a $40,000 truck and that doesn't include the cost of maintenance, insurance, extra gas, etc.

If you manage 10+ rentals and do most of the maintenance / improvements yourself, then a truck may be justified. You need an economical car that is fully paid for with good gas mileage. I don't even think you would have enough work to justify a small utility trailer, but that would be a more justifiable expense.