Hi everyone I'm trying to figure it out how to go about buying appliances for my two unit building without expending a lot of money.this is my very first investment property and Im on a extreme budget to make my numbers work. so I'm wondering if I should buy New or Used and where to buy it from and also if I should consider specific brands. I need: Refrigerators - Stove - Microwave - Washer and Dryer.
Here HD offers 18-month, no interest financing on appliances (with a minimum purchase amount) ... we make use of it regularly as it allows us to put new, energy efficient appliances in our buildings and pay for them out of cashflow.
We do buy second hand appliances as well, but in our area most of what you will find used is considerably older (inefficient) and in poor condition.
The choice between used and new is often dependent upon the intended clientele for the building in question (and the amount of rent to be generated by the unit).
For brands, specifically new, Frigidaire usually gets you the most bang for your buck. If you cannot find a wholesale appliance place in your area, I'd suggest Craigslist or OfferUp. Bought my garage fridge from OfferUp for $250. Very easy to negotiate with people there. Unless you have a high-end building, I'd stick to used appliances as most renters wouldn't be able to notice a major difference between a slightly used fridge and a newer one.
Do you NEED a washer and dryer? Do you even NEED a microwave? I have 2 sets of duplexes and both my financial advisor and property managers recommend that as the washers and dryers break, I not replace them. They said since a duplex is basically like a small home and most of the folks I'm renting to are couples or families, they usually already have a washer and dryer. In fact, the PM said some people have even put their washer and dryer in storage while renting my place.
As for a microwave, I've rented plenty of places that didn't have them, both as a landlord and as a renter. (None of my duplexes come with a microwave and they stay rented.) They are pretty cheap. I think most folks already have one or are willing to go buy one. I don't see that as a deal breaker for a renter. That's just my 2 cents.
As for where to buy stuff, another post was saying a lot of folks go to Lowe's and Home Depot. Also, I think they both give discounts if you're a veteran...or know one willing to buy for you. Also, Black Friday is coming up if you can hold on that long. There is also Craigslist, with the understanding that they may not match and as used, they may not last as long.
Oh, and I don't know if you have a choice, but people are also saying to go with electric over gas stoves as there are more chances of accidents and some renters just don't know how to use gas.
That's a tough one. Just my personal experience: I bought a new stove and a new refrigerator and they have lasted through two tenants, and over 5 years (they are still in use). I bought a used dryer and washer, they lasted less than three each. So there is an element of you get what you pay for. That being said if you simply do not have the money right now, a nice looking, functional, used appliance can buy your come time until you save up the money for a new appliance.
Also, I don't provide microwaves, so if you want to cut a corner that might be one to cut. I used to provide the washer and dryer units, but for the first time recently I did NOT, and the unit rented just fine with just the hook ups. It was a single family home, though. Again, just my experiences.
I have 20 units and have never and will never pay new price for appliances.
I just go online (usually Facebook marketplace) and find used alliances that are working good and clean and it is common to find a washer and dryer set for under $200, a white single door fridge for $150, a white stove for $100 and microwaves are a fine a dozen.
The same appliances at Home Depot would be around $2000 even if you went with their low end lines.
Also, you can find used appliance guys on line that will also deliver and hook up. I will not pay until it is installed and working.
I only provide washer, dryer, fridge and stove. Of those I have had good luck buying used fridges and stoves from craigslist used. They seem to last and most times they only sell them due to the finish color. I typically pay 100 dollars each and spend an hour cleaning them up.
However it seems used washer and dryers only get sold because they are about to die. I have gone through 3 sets in 1 year in my first rental. I have had good luck buying the cheapest new set from Menards. I have 4 Amana dryers and 1 Amana washer in my rentals/personal house and they have held up very well. I can pick up the pair for just over 500 dollars when they have the 11% rebate.
If the properties are in Chicago, I would suggest to put appliances. Try Sears Outlet. They are basically new but are a bit damaged and are cheaper. They get dinged appliances from different stores, like HH Gregg, Best Buy, etc. I wouldn't put used appliances, as appliances aren't that expensive to begin with, especially after you consider how long new one will last vs the used one, but that's just me.
I am lucky to have a used appliance shop close by that sells appliances roughly 30% of what new costs. They come with 3 month warranties but I usually get years out of them. I also learned how to trouble shoot and repair simple issues to increase the longevity of my appliances. A lot of times a few bucks will get a lot more life out of them. See if there is a second hand appliance seller near you. I've also used Craigslist in the past but the used appliance store is a one stop shop so much more efficient on time.
Also it's written in my lease that I'm not responsible to replace appliances. But I will help a tenant find one on craigslist for a pickup fee
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing