More than once I have warned new or would be landlords that buying the property is the easy part. Owning and maintaining is the hard and expensive part. I was reminded of that first hand this week.
My tenant called me Saturday to tell me the roof was leaking and texted me a picture. Ok. I figured I would need to replace that roof in 2019 or 2020. I guess we will do this a little early.
Wednesday night, I get a call the HVAC is out in a unit. This unit was old and this was not unexpected. My contractor called me and recommended replacement as the unit was old and the repair would be over $1000 on a unit that was starting to nickel and dime me. I bit the bullet and said replace it.
At this point, I'm almost $9000 in CAPX in less than a week. I get a call at 9:30 last night from my contractor. His tech had been out there 4 hours trying to get the duct work to stay together. The ducts are falling apart under the air flow of a quality newer unit. Ok. Do what you need to do and bill me.
On top of that I have a vacancy in one of my condos which I thankfully took a deposit for Tuesday.
The good news was I had money set aside for the ac unit and I was able to cover the roof with cash generated from my rentals. If I hadn't had the cash, I also have a line of credit available for things like this; however, I would have been in trouble if I were new investor with no reserves.
Thanks for reading my CAPX PSA.
Sorry to hear of the troubles but thanks for putting the reality into the dream! Always good for everyone to hear of these types of situations and to insure that when evaluating the deals, to understand a good reserve/LOC is required for just such instances. Good luck in your future endeavors.