How much is too much for repairs on a new property.

How much is too much for repairs on a new property.

Investor · Woodbridge, VA · Member since 2008 · 34 posts · 3 votes

Hello All,

I have been looking at acquiring another property and I have estimates on repairs that need to be done. Repairs are going to be around 5K on a 70k property in Winston Salem NC. I have done repairs before on a new property but not to this extent? So I guess my question is how much is too much and what have some of you guys gone thru?  thanks 

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  • Rental Property Investor · Kansas City, MO · Member since 2016 · 112 posts · 75 votes
    8y

    @Shannon Young Making repairs on a property is a great way to add value. When you are sinking costs into a property make sure that you are not overspending on a house where the area will not support the upgrades. For example, adding a $30K pool to a home that is valued at $50K, adding a 3 car garage to a 900 sqft home, ect. Think of this the same way if you plan on renting out the property. If you are upgrading the kitchen appliances and are not able to increase rent or make the home more desirable, then it would be best to save the time and energy to focus on the next project. 

  • Investor · Woodbridge, VA · Member since 2008 · 34 posts · 3 votes
    8y

    Thanks Micheal . No upgrades. Its really plumbing and electrical repairs, damaged flooring , maintenance stuff.

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