Newbie asking for assistance

5 Replies

Hi, I bought my first property in September of 2018 with a VA loan because I am prior military. I have owned the house for over a year now and my original plan was to hire a property manager to find me a tenant. I bought the house from a previous investor who had tenants already and wanted to liquidate. My property manager is now telling me I need to do more renovations to the house before it can be rented. I don't have the money to complete the renovations. I'm debating on selling the house to break even or just manage the rental myself. The house is in Baltimore, MD. Please advise.

I would say it would depend on the type of renovations he suggested... if the property is safe to live in, I don't see why you can't rent it out. If it passed a VA inspection, I would think its ok. If the home is remodeled you can charge more rent and the property manager would get more commission... I have rented out my property (also VA loan) for 9 years and the only thing my property manager has recommended is fresh paint or new carpet once and pressure washing the outside every few years.

I would talk to a few more property managers. Each will have their own standard, and it may be that you've spoken to one that only like high end rentals. If that's not the case, you may want to look into financing the repairs. If you're able to cover the cost of the additional financing with the rent payments, then this could be a good option. I know that when people think they're going to "break even" on a sale, they often end up writing a check at closing.

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