I have a rental unit that is outdated and in need of a rehab. It’s not horrible just old and somewhat dirty. Mismatched floors, mismatched baseboards. Worn, etc.
I was waiting for the tenant to move out to do some work. The tenant move out and without even advertising I have high demand from people.
Some good tenants are willing to rent “As is” for the exact amount I was going to ask after rehab.
What should I do? Should I just defer maintenance and rent as is? Or at least do a little something?
If someone wants to rent as is for the same price you'd get after doing the work, then it sounds like the remodeling would only be for your personal preference. Why waste money upgrading when there's no benefit to you? And any time spent unoccupied while getting repairs done is rent money not received. I'd either remodel and up rent slightly, or let the next tenant take it as is.
old ≠ defer maintenance. Make sure it's clean and everything is in working order. I wouldn't do any upgrade that does not raise the rent.
Definitely clean. The cleaner and generally nicer the apartment, the nicer the tenant. You can do some minor improvements now and some later on.
I am a huge advocate of what I call a reverse BRRRR, which really only means reversing the first two Rs. If it's cash flowing and tenants will take it and there are no nightmare issues that will come up, I don't mind renting at lower than market value because it is lower than market value and then waiting to do the refi later or flip. It's best done obviously only when you can leave your money or loan in place.