Buy new or craigslist appliances for rentals?
Grand Rapids, MI · Member since 2014 · 174 posts · 27 votes
Buy new or craigslist appliances for rentals?
Most Popular Reply
Member since 2016 · 13k+ posts · 12k+ votes
9yI 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.
16 Replies
- 9yAbel CurielBusiness MemberReal Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
Good morning Drew,
Its always nice to have the peace of mind of knowing you got something out of the box under warranty vs. saving some $ on something that may end up costing more in the end if it needs to be replaced. I'd go with new appliances- Sears is closing down and the location near me had some great deals.
Best of luck to you!
-Abel
REbuild Team - eXp Realty5234 Reviews - Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes9y
@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..
- Member since 2016 · 13k+ posts · 12k+ votes9y
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.
- Contractor · Glen Cove, NY · Member since 2016 · 209 posts · 89 votes9y
I would do New with warranty for sure. If you have a resale number that may help in obtaining a professional discount. I liked Sears Kenmore and have bought from them for years. However; the Sears of yesterday is not current Sears. They sold out and the new owners are really a real estate company not a retailer. They like the properties so they are closing many softer side of Sears department stores for the property value has more potential than the store. Kenmore is not the same either. It was a well made product and lasted a long time. Not now. The best thing today is just purchase for the warranty at the best price like a disposable. Expensive units do not make them better. The repairs are just more costly. My experience. You do not make any more with cost effective appliances over expensive ones in rentals since you are not selling unless it is a very high end rental.
- Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes9y
@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.
- Member since 2016 · 13k+ posts · 12k+ votes9y
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.
- Rental Property Investor · Grand Rapids, MI · Member since 2017 · 113 posts · 91 votes9y
Appliances – new or used, it’s a question I’ve asked myself for 25 years.
We purchase both quite frankly. In most cases I opt for new always from Home Depot; I live there. I buy the same stoves and refrigerators – generally about $800.00 per set delivered and the stove hooked up. They keep the old appliances, I don’t have to scrap them or deal with them. I try to limit my efforts to higher level tasks, not entry level tasks.
We’ve had great luck with new and used, I’ve had grief with both also. But the one thing I have learned is with stoves I only buy GAS “5 knob” stoves – those that have 4 knobs for burners and one for the oven. I just replaced a 2 year old (purchased new) stove that had the pretty plastic press style screen on the back of the stove top. The oven button cracked and only cost $450.00 for the replacement part!
As far as a refrigerator, the new / used debate is the same but in either case I try to avoid glass shelves – they scratch. So we look for wire shelving and perhaps one glass shelf on the crisper drawers.
We have a local used appliance store I’ve been working with my entire Landlording career - Lee’s Appliances. They have good prices, deliver, install and remove the old ones. Depending on the property and situation I will sometimes still purchase used but I always lean towards new. Used will run as just described about $500.00 (per set), so it’s a $300.00 + difference and as you know those dollars aren’t always available on each project.
It's a problem all Landlords will have, deciding on where to place the dollars but I always lean towards new.
I agree with Greg S. no to extended warranties.
Scott
Refrigerator: http://www.homedepot.com/p/GE-15-5-cu-ft-Top-Freezer-Refrigerator-in-White-GTS16DTHWW/205092873
Stove: http://www.homedepot.com/p/Hotpoint-4-8-cu-ft-Gas-Range-in-White-RGB526DEHWW/205171223
- Real Estate Broker · St. Louis, MO · Member since 2014 · 206 posts · 194 votes9yIn my residential units I always purchase new. The time you are spending looking for appliance deals, checking them out, dealing with installation, etc. is not a good use of time. Buy new, have delivered, old hauled away, move on with life and get a one year warranty.
- Durham, NC · Member since 2013 · 502 posts · 215 votes9y
I use either. Refrigerators are pricey new but last for a long time and you can get them used pretty cheap. The same counts for stoves. For dishwashers, I only buy new. They are inexpensive new, especially when you buy a returned product. But a failing dishwasher can can turn the apartment into a pool with huge repair bills.
- Grand Rapids, MI · Member since 2015 · 8 posts · 2 votes9y
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.
- Investor · Frederick, MD · Member since 2015 · 42 posts · 17 votes9y
Most of the big box stores offer new appliances that are discounted because of cosmetic damage or were floor models. Another option to consider.
My opinion is that with extra rebates typically offered there isn't that much increase in buying new appliances that it is worth the peace of mind. You are depreciating the cost of the appliances too, so your taxable cost ends up less.
- Investor · TX · Member since 2015 · 393 posts · 290 votes9y
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.
- 9yOzzy SirimsiBusiness MemberReal Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votesI always go to big stores that sell the ones that has dents, scratches, etc... It is cheaper for me, and nicer for the tenant. Win- win
- Forney, TX · Member since 2013 · 119 posts · 101 votes9y
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.
- Investor · Madison, IN · Member since 2016 · 110 posts · 89 votes9y
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
- Investor · Grosse Pointe Shores, MI · Member since 2017 · 160 posts · 74 votes9y
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.
Thismay 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.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.