Average Turnover Costs -3/1 SFR in “C” Neighborhood

[Lina Kwon]

Hello All,

I am a newbie investor and have just acquired my first rental property (3/1 SFH in a "C" neighborhood) in Lawrence Township of Indianapolis.

I am in the process of trying to find a good property manager. A highly recommended PM just told me that the average costs to turn a property around after a tenant vacates is between $3,500-$5,500 in repairs...

I am shocked to hear this number as turnover would basically wipe out all cash flow for the year... I would really appreciate and any insight/thoughts on this number and how accurate of an estimate it is...

Thanks in advance,

[Matthew Irish-Jones]

@Lina Kwon that really depends.  If you need to fully renovate the apartment you can spend a lot more than $3500.  You can spend 20K ripping it down to the studs and re-building it.

If it just needs to be cleaned and some light maintenance work, you can spend $250 to turn it over.

A fully renovated apartment should need little more than paint, cleaning and maintenance for 7-10 years.

I would ask what is included in that estimate of $3,500-$5,500.  It has to be a lot more than cleaning and light maintenance.