Attorney · Los Angeles, CA · Member since 2015 · 65 posts · 51 votes
I own single family home in a C+ area in Cleveland. The city mandates lead paint testing. I need to paint the home interior and exterior to pass testing. I have gotten two quotes. The one I like slightly better is below. I have owned the home for 2 years. Tenants have been good (pay on time, minimal repairs) but are messy and said they may move out soon. I have 3 options. A) Sell it with repairs needed, B) sell it after doing paint/repairs, or C) make repairs and keep it. I am leaning towards option A or B. Bought it at $45,000. Could likely sell it as-is for $65,000 or after repairs for $75,000 or $80,000. Repairs would be a tax write off potentially.
Thoughts? Thanks in advance
Exterior paint is $7,500 for:
- Scrape and paint entire exterior of the home - (2 story structure) - Scrape and paint (13) windows - Scrape and paint awnings - Windows and trim to be painted white
and interior paint is $3,800 for:
- Make various drywall repairs throughout the home (walls and ceilings) - Paint all interior rooms to include walls, ceilings and trim
@Kellan Martz Based on the information you provided I would lean towards options A or C. The reason being that if you have sold comps that show you could sell it as is for $65,000 and it would cost you $11,300 for both interior and exterior painting. While the comps with it repaired only sell for $75,000-80,000 that only gets you an extra $10,000-15,000, even with potential tax write offs your ROI would not be great. However the reason I like potentially C is depending on if based on comps you know that doing the repairs would allow to increase rent and based off that number you could calculate your ROI and decided from there. At the end of the day I recommend choosing the option where the numbers make sense for you and your long term goals. Think back to your long term plan for the property when you purchased it hopefully this helps!
@Kellan Martz Based on the information you provided I would lean towards options A or C. The reason being that if you have sold comps that show you could sell it as is for $65,000 and it would cost you $11,300 for both interior and exterior painting. While the comps with it repaired only sell for $75,000-80,000 that only gets you an extra $10,000-15,000, even with potential tax write offs your ROI would not be great. However the reason I like potentially C is depending on if based on comps you know that doing the repairs would allow to increase rent and based off that number you could calculate your ROI and decided from there. At the end of the day I recommend choosing the option where the numbers make sense for you and your long term goals. Think back to your long term plan for the property when you purchased it hopefully this helps!
@Dallas Regimbal that is a good point, thank you. It is slightly under market rent already. So repairs could bump it up in rent. This was my first rental property purchase so my original goal was to buy and hold, and accumulate a number of properties. But having been in the game for a few years now, I may want to sent my goals bigger and use the equity towards something bigger.
I own single family home in a C+ area in Cleveland. The city mandates lead paint testing. I need to paint the home interior and exterior to pass testing. I have gotten two quotes. The one I like slightly better is below. I have owned the home for 2 years. Tenants have been good (pay on time, minimal repairs) but are messy and said they may move out soon. I have 3 options. A) Sell it with repairs needed, B) sell it after doing paint/repairs, or C) make repairs and keep it. I am leaning towards option A or B. Bought it at $45,000. Could likely sell it as-is for $65,000 or after repairs for $75,000 or $80,000. Repairs would be a tax write off potentially.
Thoughts? Thanks in advance
Exterior paint is $7,500 for:
- Scrape and paint entire exterior of the home - (2 story structure) - Scrape and paint (13) windows - Scrape and paint awnings - Windows and trim to be painted white
and interior paint is $3,800 for:
- Make various drywall repairs throughout the home (walls and ceilings) - Paint all interior rooms to include walls, ceilings and trim
You'll probably end up netting the highest profit by selling As-Is.
well, I can tell you this, My biggest mistake was not keeping more of the 500 or so I flipped over the last 6 7 8 years, HUGE mistake,,, so think long term,
I own single family home in a C+ area in Cleveland. The city mandates lead paint testing. I need to paint the home interior and exterior to pass testing. I have gotten two quotes. The one I like slightly better is below. I have owned the home for 2 years. Tenants have been good (pay on time, minimal repairs) but are messy and said they may move out soon. I have 3 options. A) Sell it with repairs needed, B) sell it after doing paint/repairs, or C) make repairs and keep it. I am leaning towards option A or B. Bought it at $45,000. Could likely sell it as-is for $65,000 or after repairs for $75,000 or $80,000. Repairs would be a tax write off potentially.
Thoughts? Thanks in advance
Exterior paint is $7,500 for:
- Scrape and paint entire exterior of the home - (2 story structure) - Scrape and paint (13) windows - Scrape and paint awnings - Windows and trim to be painted white
and interior paint is $3,800 for:
- Make various drywall repairs throughout the home (walls and ceilings) - Paint all interior rooms to include walls, ceilings and trim
I own single family home in a C+ area in Cleveland. The city mandates lead paint testing. I need to paint the home interior and exterior to pass testing. I have gotten two quotes. The one I like slightly better is below. I have owned the home for 2 years. Tenants have been good (pay on time, minimal repairs) but are messy and said they may move out soon. I have 3 options. A) Sell it with repairs needed, B) sell it after doing paint/repairs, or C) make repairs and keep it. I am leaning towards option A or B. Bought it at $45,000. Could likely sell it as-is for $65,000 or after repairs for $75,000 or $80,000. Repairs would be a tax write off potentially.
Thoughts? Thanks in advance
Exterior paint is $7,500 for:
- Scrape and paint entire exterior of the home - (2 story structure) - Scrape and paint (13) windows - Scrape and paint awnings - Windows and trim to be painted white
and interior paint is $3,800 for:
- Make various drywall repairs throughout the home (walls and ceilings) - Paint all interior rooms to include walls, ceilings and trim