Buy new or craigslist appliances for rentals?

Question

I'm an out of town investor and I just picked up another rental property (PP $20K) - fix ups $3K and I'm debating of what to do with the appliances. I'm hoping to get $775 in rent per month. Do you guys have better luck on craigslist or buying new? I'm not sure its worth the hassle of trying to find cheaper appliances on line vs. having the peace of mind of buying new at ABC Warehouse w/a warranty. I'm just curious to know what others have had success with! Thanks all!!

Drew D

Thomas S. · Answer

I buy all used. Remember with rentals all new tenants get the appliances that are in place and are always used for them. I generally get 2-3 year old appliances good as new for about $150 each. I scan the adds regularly and always keep a few as spares on hand for when needed. For those insisting on only new I would also suggest keeping used ones on hand as a quick swap out when appliances fail so that the tenant is not without while waiting for a new replacement.

I find warranties on new appliances are generally useless as the manufacturer knows the likely hood they will fail in the warranty period is unlikely.

My appliances generally last as long as new ones and I consider them to be throw away when they eventually fail.

I find warranties on new appliances are generally useless as the manufacturer knows the likely hood they will fail in the warranty period is unlikely.

My appliances generally last as long as new ones and I consider them to be throw away when they eventually fail.

Kimberly H. · Answer

@Drew Denham if you have the ability to haul the appliances around yourself I would look for Habitat for Humanity ReStores in your area. By me they are always selling new appliances at great deals, they just don't deliver or install.

Rolanda Eldridge · Answer

@Drew Denham..Consider both new and used.  I have bought used from CL and Used appliance store that lasted 5 yrs.  The upfront cost on a Rehab makes a big difference...Save $$$ where you can...In year 2/3 upgrade those items if they're not performing..

Julie Thevenow · Answer

I use both, depending on what kind of deal I can get.

Habitat restore I got a used flat top convection oven for $150.00 I spent $25.00 to replace the terminal connection.

Last Saturday my Lowes was getting ready for inventory. They had a $1,500 flat top convection oven that was dented on the side. It was already reduced to $800.00 I got it for $200.00

Roger S. · Answer

Used, almost always.  Who cares about a warranty when the replacement is available for under 100 bucks?  So far I've never had to replace a used appliance due to failure.   For my own house, I've had good luck at big box store scratch and dent aisles.

Michael Davis · Answer

I can offer a unique perspective on this as the owner of an appliance refurbishment business looking to get into real estate investment.

There are several factors to consider here. What type of property is the appliance going into and what grade of machinery are you looking to have?

I have several rental management companies and landlords that use us almost exclusively for appliance repairs/sales. We do a 1-year warranty on all of our refurbished units and my regular clients get complimentary delivery/installation and haul away.

Case Study:

I recently had a rental property situation where the owner of the property had bought a new fridge (08/16 mfg date frigidaire base model 18cu ft $500-600) They contacted me to repair it because the manufacturer had scheduled them 2 weeks out for service and the tenant was on the verge of losing $200 worth of groceries.

The compressor had failed and they would need a factory warranty replacement on the whole unit. I had a loaner fridge there for the tenant an hour later, which the owner paid $150 for the service call, delivery, 2-week loaner, and pickup. If they had bought from me in the first place I could have provided the same model used, but less than a year old for $400 and would have had it repaired or replaced in under 24 hours from the initial tenant complaint. They would have spent $400 total and had a better customer experience. They are now into it for $650-$750, including my service.

A lot of it comes down to the company you use for your appliance transactions. We can offer better value, convenience, and service than buying new in almost every circumstance. The caveat would be the less common specialty items (apartment size units, fridges that have to be within an exact dimension etc..) where there isn't really a steady used supply of machines available. We maintain over 200 appliances in our warehouse showroom, so selection isn't usually an issue on the more standard items.

If you or anyone else has any appliance related questions I would be more than happy to answer them.

Thomas S. · Answer

Not surprisingly today the working parts of all manufactures appliances are produced  by one or two companies world wide. Appliance durability is standard although varies between product line as opposed to product name. Loyalty to a single manufacturer in todays global economy is emotional rather than practical.

Do not purchase the extended warranties on appliances as they do not pay off, they are a upsell scam on the part of retailers.

Katherine S. · Answer

I will never buy an LG product again.   I had purchased a new LG stove with glass top and double ovens about 5 years ago for one of our properties.   Last year (at 4 years old),  the cooktop stopped working.   After an $85 service call,  I was told that the part needed was no longer available.   Never mind that the newer models were essentially the same product,  the $100 part needed to put this unit back in service was not available anywhere.   And I know this because I called everywhere. After repeated calls to LG,  I was finally told that they design their products for a service life of 7 years,  and they don't stock parts after 4.

may or may not be true,  because no two people I ever spoke to ever had the same explanation,  that is of course if I could actually reach a human being.

Never again,  not any LG product.

Shannon Slade · Answer

Used for sure, we have had good experiences buying from craigslist.  I do not recommend buying new appliances with extended warranties, takes too long to get your money back.  New appliances do not add that much value to the home here.  Over the past three years I have started replacing all stoves with the glass tops for $200 or less with an electric cord already wired from craigslist.  Also if you pay the higher price for newer appliances and do not buy the extended warranty, I have seen folks SOL after the 90 days or year warranty is up.

Buy new or craigslist appliances for rentals?

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