Will be investing in my first property soon. In order to reduce unforeseen repair costs, do you recommend the investor perform cosmetic and light repairs on the property.? I realize the clock is ticking on the investment. I don't intend to wholesale my first house. I will be working at this on a full time basis and have experience painting and plastering rental properties I also realize I must develop a team including sub contractors.
Honestly, that depends. What is your time worth? How long will it take you to perform the upgrades? What will you NOT be doing while you are doing those jobs yourself?
Find out how much the jobs would cost to be handled by a handyman or small contractor and do a quick cost benefit analysis. Would you make more money by hiring out the job while you focus on making connections to sell the property or finding your next one? Maybe not, but you should know that as soon as possible.
My wife makes fun of me because I turn everything into numbers, but I feel like it is simply the best way to manage my time.
When i bought my first property, I said WOW you want 3k to rehab this to rent ready? I thought I could do it myself...I'm a handy guy...I painted the entire inside of the house in 2 a half days, finished it up in a weeks time...During that time, I lost a sale that would have made me lots of money...I learned my lesson the hard way. Good luck to you in what you decide.
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