Keep old wiring or rewire BRRRR property

[Fillip Nelson]

Hello,

I purchased a 3/1 rehab property in Pittsburgh. It was vacant for some years. It needs a new panel and main service line according to inspector. The current system has fuses and I have only have 4 circuits for the entire home. I have quotes to replace the panel and main service line for $1,800-$2,100. My question is should I re-wire the home and add more circuits? That would be from $6,500-$8,000.

I plan on either having window AC units, or perhaps mini-split systems, I have not decided.

I have a tight budget, but is the rewiring something that needs to be done since I am renting it out, or do I have other options. Some of the old wiring is knob and tube.

Thanks,

Fillip

[Stuart Udis]

@Fillip Nelson When I read investors write they have tight budgets and are completing a BRRRR I automatically assume they have to keep their construction costs below a certain amount because they are keenly aware of the max valuation and know they won't get their cash out on the refinance unless they keep their costs down. It's one of the biggest mistakes an investor can make and why so many pursuing BRRRR's fail in this business. Don't sacrifice doing things correctly for the sake of a cash out on a refinance that will only lead to more costly issues to resolve in the future. Wire the property correctly and address other defects now even if it means you are leaving money in the deal. Otherwise, you are likely doing nothing but acquiring paper equity you will never realize.