I could use some advice on purchasing appliances, replacing or repairing AC unit on a rental property. How much do you typically spend on these items when rehabbing a rental property?
Normally for my rentals, I let the tenants bring their own appliances.
Replacing or repairing an AC can cost anywhere from $100 to $5,000. You should have an HVAC specialist go out there and see what the issue is.
@Tassia Fisher That's a great question and one that confused me when I started looking into REI. It all depends on your market and your capital that you have. Some markets in A or B areas tenants expect you to have stainless steel appliances and if you don't they won't consider you. However if you are in D to B- it's really up to you. You can spend $1000 and get brand new ones in your units and charge an extra 50-100$ a month for them. Another option is just to provide the washer and drier outlets and require the tenant to get their own. If they bring their own they will be responsible for the maintenance and fixing of it, but you won't get that extra cashflow. If you decide to put your own in you will have the washer and drier paid off in 2 years charging an extra 50$ a month! The remaining time after that is pure cashflow which is a great return on investment in my opinion. The downside would be that typically they would expect you to fix it since they are your appliances. It all depends on how you want to approach things. I can speak from my management experience that people will gladly pay the extra 75$ a month for a washer and drier.
This is good. Here, It follows local custom. In one area all appliances except the W/D are normally in the rental. In my rural properties tenants bring along their own everything. I do two rural properties that I am supplying frig, stove, washer, dryer but I am asking another $100 per month. There is always someone that needs it ready to live in. I can supply all of that with great refurbs for less than $1500 sometimes delivered. Appliances that can give you service calls; disposal and dishwasher. I avoid those. I have a friend that even pulls out all the ceiling fans.
$1200 at lowes usually gets me a stainless fridge/range/dishwasher/microwave. Depends on whether I can find a scratch and dent or something. at that price it's worth it to me for new stuff.
HVAC varies, for me I prefer to fix or replace anything that's questionable right up front. I pay around $4000-4500 for new HVAC units (installed) for most of my units.
Thank you so much for the replies and information! This helps me in choosing which route to go with. Thanks again!
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing