New or Used Appliances? Buying for a Triplex.

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New or Used Appliances? Buying for a Triplex.

Calvin Kwan
Oakland, CA · Member since 2015 · 246 posts · 127 votes

Hi All,

I'm almost done rehabbing my vacant triplex in Oakland and will need to start shopping for appliances soon.  Each unit will have all the major appliances including dishwasher and in-unit washer/dryer.  It's B+ neighborhood, so I'd like to attract higher end tenants.

In my last 2 projects, I purchased new appliances for both. The purchases all fell during Black Friday, so I was able to get some good deals.  I also like new appliances as they come with warranties through the manufacturer, and I have extended warranties through my CC.  Less hassle overall, and no issues so far *knock on wood*.

Since I will be outfitting all 3 units at once and costs are high, I'm considering buying some appliances used.  What appliances would you consider buying used?  What would you stay away from?  Any sales I should be keeping an eye out for?

Any thoughts or feedback would be greatly appreciated.

Thanks!

Calvin

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Karl B.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
5y

If it's B+ I would buy new or at the very least go to the local Sears scratch & dent store to see what they have (it's mostly new stuff with cosmetic imperfections - so if an oven has a scratch on the side and it can't be seen once installed if facing a wall and it saves you a few hundred it's worth considering). 

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y

    For one-off things, I'm ok buying used.  I call my Hungarian thrift store owner Jan and he delivers with a smile and jokes in a cool accent. I average $180 each for a stove and fridge that mostly match. 

    If it's one of my upstairs units or I am doing multiple units, I order new. Delivered.  Worth it to open a contractors account if spending more than $1500 at Lowe's or HD. And Vets get 10% off all purchases, so I consider that as well.  

    3Reply
  • Damon Nieves
    Member since 2020 · 5 posts · 4 votes
    5y

    I am afraid of used. Thankfully it didn't happen to me, but someone I know bought a used oven and then had German Roach issues. They were hiding inside!

    1Reply
  • Matt Koester
    Rental Property Investor · Effingham, IL · Member since 2019 · 5 posts · 3 votes
    5y

    A little off topic, but what is everyone's thoughts on a gas vs electric stove in a rental? Close to completing a renovation now and putting it up for rent, but have concerns about a gas stove in a rental property. Already have had discussion w/ an electrician to run a new plug in for an electric stove which will cost me a couple hundred to complete. Is there valid concern in a gas applicane or am I overthinking that one? 

    1Reply
  • Will GastonPro Member
    Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
    5y

    @Calvin Kwan I try to live by the 80/20 rule. If 80% of your results (i.e. wealth generation) come from 20% of your decisions, I find it really hard to believe that servicing used appliances would be in that 20%.

    Buy new appliances and be done with it. You won't regret it once they're in.

    In 15 years of real estate, I have never, ever, ever regretting making a property too nice. I have often regretted not making a property nice enough. 

    6Reply
  • Frantz JosephPro Member
    Rental Property Investor · GA · Member since 2017 · 62 posts · 44 votes
    5y

    I think you have great advice on this thread but I will add my two cents. Since Jan 2019 I renovated 5 apartments. The first apartment I went through a 3rd party scratch and dent place for all my appliances including the washer and Dryer. So far the washer broke down on me twice and cost me $300 in repairs. The second apartment I bought through a third party scratch and dent party for appliances and purchased a used washer and dryer total cost of washer and dryer $550, in December after spending $200 to repair I had to replace the washing machine, $450 + 125 for 5 year. 3rd and 4th apartments I purchased new machines through lowes and found 10% coupons online for purchases. I still bought used washer and dryers for both units at a combined cost of approximately $550 per apartment. I had to pay $200 so far on repairs for those machines. the last unit I just renovated I bought brand new units with 5-year warranties on the fridge, dishwasher, and stove. we did not provide washer and dryers and didn't have any issues finding a great tenant. I dont want to deal with any maintenance calls anymore. So after dealing with repair companies I rather deal with a warranty company. so far I called them 3 times for a dishwasher service issue. I saved around $125 for each call.  which paid for all my warranties and saved me $100 bucks.

    3Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    5y

    @Calvin Kwan. I purchase washers and dryers used, with a section in my lease that states; "while the landlord recognizes he supplies a washer and dryer; maintenance, replacement, or use of these appliances is not guaranteed by landlord". Or something to that effect. In other words, if tenants are super harsh and keep breaking the washer and dryer, I will stop fixing and supplying them. I use the same language for a garbage disposal. As the fridge/dishwasher/stove are used much more often, and out in the open, I do like to buy them new (or super high quality used). 

    2Reply
  • Seth Turner
    Member since 2020 · 3 posts · 0 votes
    5y

    @James Edward

    This seems like a good idea. The lightly "damaged", marked down appliances.

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Steven Foster Wilson:
    Originally posted by @Calvin Kwan:

    Hi All,

    I'm almost done rehabbing my vacant triplex in Oakland and will need to start shopping for appliances soon.  Each unit will have all the major appliances including dishwasher and in-unit washer/dryer.  It's B+ neighborhood, so I'd like to attract higher end tenants.

    In my last 2 projects, I purchased new appliances for both. The purchases all fell during Black Friday, so I was able to get some good deals.  I also like new appliances as they come with warranties through the manufacturer, and I have extended warranties through my CC.  Less hassle overall, and no issues so far *knock on wood*.

    Since I will be outfitting all 3 units at once and costs are high, I'm considering buying some appliances used.  What appliances would you consider buying used?  What would you stay away from?  Any sales I should be keeping an eye out for?

    Any thoughts or feedback would be greatly appreciated.

    Thanks!

    Calvin

     I have found a guy here in Columbus who sets me up with an appliance set, stainless steel, almost brand new for $600 a pot. AND HE DELIVERS!! I don't ask if their stolen, I just accept the low price. I priced out the appliances brand new, it was over $3,000. I have bought 5 sets so far and its saved me thousands!

     lol

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    0Reply
  • Account Closed
    San Francisco, CA · Member since 2018 · 72 posts · 30 votes
    5y

    @Calvin Kwan

    Hey Calvin I recently purchased some great appliances for my property in Stockton. I got them on offer up. They are second hand but came clean with a warranty and they look and work as if they’re brand new. Saved over $2K with the same look. I find the best deals Craigslist or offer up

    1Reply
  • Frantz JosephPro Member
    Rental Property Investor · GA · Member since 2017 · 62 posts · 44 votes
    5y

    @Remington Lyman

    One additional item. Make sure you buy low tech appliances. The more sophisticated the item the more that can go wrong. It doesn’t matter if it’s brand new or used keep it low tech. Especially for clothes washers, dishwashers, and fridges. No water dispenser on the outside of fridges. Ice tray is enough.

    3Reply
  • Frantz JosephPro Member
    Rental Property Investor · GA · Member since 2017 · 62 posts · 44 votes
    5y

    @Matt Stricklen your write on the money with that Mat.

    0Reply
  • Frantz JosephPro Member
    Rental Property Investor · GA · Member since 2017 · 62 posts · 44 votes
    5y

    @Matt Stricklen your right on the money with that Mat.

    0Reply
  • Troy Albers
    Rental Property Investor · Fleming Island, FL · Member since 2019 · 85 posts · 104 votes
    5y

    @Calvin Kwan

    if your going to buy from Lowe’s or Home Depot, plan one being patient. They are sold out of most major appliances. The appliance manufacturers cannot supply the current demand.

    1Reply
  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    5y

    Right away your post says that you want to attract 'Higher End" tenants. You don't do that with used appliances, unless they are very lightly used, and these models can be purchased directly.

    Which models? Since I do my own work on appliances, I have a local appliance repair shop that advises me which ones are always being repaired. No matter the name on the machine, there are only a few manufacturers. one manufacturer builds many different models.

    New tells the tenant that they bought into class. Used, or dated appliances leave the tenant empty when they wish to boast to their friends and neighbors the deal they got with your rental.

    Used appliances will be neglected more than new, and that NEW warranty is better than others!

    Costs are high? Why buy new when pretty used appliances will do as good?

    This depends on the RE Guru you listen to most. You could save costs by having a laundry room with pay machines and have apartment style stoves and sinks too! Why buy a car when I can use public transportation?

    I like to bring Value. I like to bring as much value as the numbers will let me bring!

    Use Full size Washer/Dryer configurations. Stay away from the smaller stack/on washer/dryer combos, as they will not wash the blankets or comforters, as well as more than one pillow at a time!

    Your range needs to be large enough for a large roasting pan, even in California! The 2nd oven option, usually a convection oven, would be good for someone who bakes!

    You need a range hood that completely covers your range, and that is vented to the OUTSIDE!
    All range hoods have an option to vent into the house, but what idiot figured that someone wants a range to take the hot sticky smells from the stove or oven and push them right back in your face? ( Yes, this is a pet peeve of mine!)

    I was doing a lot of stove-top cooking while using the oven one day, and the range fan, all by its self, turned on and vented the heat! There was a bit of smoke in the house, but I had a window open.
    Without my being right there, the range fan vented my kitchen much better than the window! When the temperature came down, the fan turned off!

    Let us know what you wind up doing. Everything in this game is a gamble, but most times, it all works out in the end!

    [email protected]
    1Reply
  • Justin V.
    Rental Property Investor · Minneapolis, MN · Member since 2016 · 214 posts · 132 votes
    5y

    @Calvin Kwan

    I’m always super happy I bought new with free delivery from Home Depot when I watch a couple of young in shape people haul them up a set of stairs to a 2nd floor duplex kitchen.

    I’m in a b/b+ area too I think. I pay for slightly better than minimum stainless steel (ss) appliances, and stackable washers and dryers: fridge with gray sides instead of black (unless I’m putting it in a cabinet, then just make sure the handle is ss), but don’t splurge for an ice maker unless included (150ish more), Range has sturdy Grates with ss knobs, top and behind knobs (150 more) and is usually a 5 burner, dishwasher is solid ss with buttons on top ($100 more), over range microwave more stainless with a look similar to the range (25-50 more). Front load stackable washer dryers for the look and water savings (will splurge 200 more for gray if going to be freestanding in a kitchen. I don’t go for matching appliances, but they need to go together well. I also add a side panel to the stove if it’s the end of my cabinets.

    Kitchen is usually my listing cover photo and tenants are attracted to them.

    If something goes wrong, it’s nice to have the warranty. Once out of warranty I’ll troubleshoot but opt for new except for special cases. I think I have 6 of the same stove, so I’ll likely pay to understand the issue the first time if I can’t figure it out. After will depend.

    3Reply
  • Dell J.
    Member since 2010 · 210 posts · 158 votes
    5y
    Oh wow! I was thinking it was just in my area that has a shortage.

    Originally posted by @Troy Albers:

    @Calvin Kwan

    if your going to buy from Lowe’s or Home Depot, plan one being patient. They are sold out of most major appliances. The appliance manufacturers cannot supply the current demand.

    0Reply
  • Nate Bell
    Member since 2018 · 150 posts · 140 votes
    5y

    @Calvin Kwan

    It depends a little on the rental class, but I’ve been having terrible luck with all types of new appliances. Unless it’s new construction, I’ll be going the Craigslist and FB Marketplace route for all my appliances for the foreseeable future. They’re all gonna break anyway, might as well not pay double to start.

    1Reply
  • Gary L Wallman
    Rental Property Investor · Beavercreek OH · Member since 2018 · 422 posts · 970 votes
    5y
    Originally posted by @Calvin Kwan:

    Stove, dishwasher, refrigerator, washer, dryer x 3.  It's probably looking like at least $7,500 for all new appliances :(

     Calvin,

    Unless you have shared laundry facilities I would strongly advise against providing washers and dryers for your tenants. They are expensive to repair and replace and nearly all renters own a pair already. I've even had renters some years back (before I knew better) ask if I could remove mine so they could use theirs.

    I don't believe I've ever lost a potential tenant over not supplying a washer and dryer. Here in Ohio, some landlords skip out on the fridge and range too! That I don't recommend however. Good luck to you!

    1Reply
  • Gary L Wallman
    Rental Property Investor · Beavercreek OH · Member since 2018 · 422 posts · 970 votes
    5y
    Originally posted by @Matt Koester:

    A little off topic, but what is everyone's thoughts on a gas vs electric stove in a rental? Close to completing a renovation now and putting it up for rent, but have concerns about a gas stove in a rental property. Already have had discussion w/ an electrician to run a new plug in for an electric stove which will cost me a couple hundred to complete. Is there valid concern in a gas applicane or am I overthinking that one? 

     Matt,

    I think you're overthinking it. If gas is at the property you need a proper detector anyway. I have found a gas range is a major attraction to tenants. Plus they are generally less expensive to purchase.

    As an aside, gas ranges don't require a 220 volt connection. This can save money on the electrician if you have to relocate stove. Also, more room in the electrical panel if you need to add A/C or some other circuits now required by code and avoid an entire service upgrade.

    Good luck to you,

    Gary

    0Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    5y

    For lower income rentals, I used to always do used appliances.  They don't always hold up.

    0Reply
  • Ike Morah
    Investor · Philadelphia, PA · Member since 2015 · 34 posts · 19 votes
    5y

    @Calvin Kwan

    I'd buy new but get bargains lowes, honedepot and best buy have off sute warehouses where if you give a list of what you need and ask them to source floor models, scratch & dents, open box or last years models. All come with full warranty and i save 50 -75%

    0Reply
  • Brian Pfaehler
    Investor · Trafalgar, IN · Member since 2016 · 95 posts · 58 votes
    5y

    @Calvin Kwan New. Every. Time. Used appliances usually suck....

    0Reply
  • Jarrid Perusse
    Member since 2019 · 2 posts · 1 vote
    5y

    @Karl B. I’ve done this for my past 2 houses... Got a nice side by side fridge, washer & dryer for about $1000 all name brand too

    1Reply
  • Aigo Pyles
    Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    5y

    If you are renting by unit you may not supply the appliances. Unless you rent it by room. 

    0Reply
  • Nicholas Field
    Investor · Las Vegas & British Columbia · Member since 2016 · 96 posts · 21 votes
    5y

    @Calvin Kwan buybused if you can find a good deal. If not go new. Look every day for weeks.

    0Reply
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