Considering I will be living in one side of the property, how knowledgeable do I need to be in regards to appliance related issues?
I listened to @Darren Sager mention in his duplex podcast that he makes tenants sign an agreement to pay for a company that handles all of those issues. Is this an option for a newbie investor? Would something like that be included in the rent?
I apologize if this is already a popular thread. I'm new and still learning how to navigate the forum.
Investor · Chorley, Lancashire · Member since 2013 · 82 posts · 22 votes
11y
I would agree with Daniel. A little bit of knowledge is good to ensure you are not being ripped off by contractors. I invest out of country, as I live in England. While I have a little bit of knowledge that helps with my investments back home this is little use for my US properties.
For me my biggest worry was overpricing from contractors. I use J Scott's book on flipping houses which gives guides to prices. That gave me confidence that I was not being ripped off and helped me find contractors.
It's true a little bit of knowledge goes a long way, but if you know the place to find the answers then sometimes that's just as good.
Investor · Rosebud, AR · Member since 2014 · 133 posts · 49 votes
11y
Our lease says they are responsible for first $100 of repairs. With that said I have been buying appliances with a repair warranty. We have found a local repair company that can fix about anything. Guarantees his repairs. We have finally bought a couple of clean used appliances and we will swap them out quick if we have an issue. Some of our renters have chosen to provide their own. I prefer them to bring their own fridge. Nothing worse than cleaning some ones fridge out. I have been toying with the idea of financing them appliances. When they leave their appliances go with them.
Investor · Titusville, PA · Member since 2015 · 298 posts · 150 votes
11y
In in my opinion, you only need to be as knowledgeable in repairs as would cause you to notice when something needs to be repaired. You can get somebody else to do the work. As for charging someone for the replacement or repair of one of your appliances, I would say that generally that should really be included in the rent. The only reason I might consider doing it the other way is if the tenant has been abusing the appliances or they have a lot of problems with appliances and you cannot afford to continue the upkeep of them. In that situation, I might consider saying that you will no longer supply the appliance and its upkeep. You supplied the first one "for free", but if they want another one, and would like to fix it or replace it,they're welcome to. If it has been understood that the price of their rent is due to the appliances included in the property, then that may where you would be responsible for repairing or replacing an appliance or by adjusting the amount of rent in their situation to compensate.
Investor · Chorley, Lancashire · Member since 2013 · 82 posts · 22 votes
11y
I would agree with Daniel. A little bit of knowledge is good to ensure you are not being ripped off by contractors. I invest out of country, as I live in England. While I have a little bit of knowledge that helps with my investments back home this is little use for my US properties.
For me my biggest worry was overpricing from contractors. I use J Scott's book on flipping houses which gives guides to prices. That gave me confidence that I was not being ripped off and helped me find contractors.
It's true a little bit of knowledge goes a long way, but if you know the place to find the answers then sometimes that's just as good.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
11y
Hey @Josh Foret, even if you go onto youtube and investigate how to do basic repairs around the house you'll be in a much better position than a person who hasn't a clue what it will take to actually do the work. The more educated you are the better off you'll be!
Investor · New Braunfels, TX · Member since 2015 · 139 posts · 26 votes
11y
My friend, @Josh Forethow are you doing? Whatever you don't know you will have to pay for the knowledge in someone else. Jim Rohn said " Ignorance is not bliss, ignorance is poverty" Tony Robbins said " When experience and money meet, experience gets the money" :) Forgive me for lecturing but we need to educate ourselves as much as we can on all things real estate. Have a wonderful night :)