Sprinkler System for Buy & Hold?..

[Ryan R.]

I've got a property that is considered to be a fairly nice rental in my area, B+ or A-.

My current strategy is to hold this property for appreciation for the next 7-10 years, possibly longer.

The yard is becoming less than desirable. About half of the houses in the neighborhood have nice landscaping and sprinkler systems. My thinking is that a nice yard will attract tenants, increase my possible resale value in the future, and the price for irrigation systems will probably never be less expensive to install than now.

I can pay for the system entirely with cash flow generated form the property. Estimates are about $2,000. The house was built in 05 so no major expenses "expected" in the near future.

Good Investment?

[Jon Holdman]

If you put in a sprinkler system you MUST plan on paying 1) for a lawn service to cut the grass and keep the sprinkler system properly adjusted, and 2) paying the water bill. Sprinkler systems require constant adjustment throughout the year, spring turn on and fall turn off. And repairs. You need to anticipate some amount of repairs every year. Water may not be as expensive in your area as here, but this still be a significant additional expense for the tenant. I've had a few of mine ask about this. My responses is "are you willing to pay an extra $100 to $150 a month for water in the summer"? Usually the conversation ends there.