If I purchased a property for rental that required 10,000 in rehab, exactly what work can I do? I know it may varied depending on the condition of the house, but 10,000 seems like somewhere between light-avergae and it would be really helpful if someone could paint a bigger picture for me to understand.
How far you can stretch that $ depends a lot on your timeline, willingness to DIY vs. hire out, and the square footage and condition of the property.
Are you saying $10k is your max renovation budget? If you tour a home with a local contractor they can give you an idea on what you could get done with your budget. Also, would be a good idea to talk to a realtor in your area to get an idea on which improvements you should prioritize.
Lowest cost improvement that could make a big impact would be things like painting, updating fixtures. Biggest bang for buck areas to improve are kitchen and bathroom.
Its 100% dependent on what the property needs. Assuming its a well kept but outdated house (i.e. granny pad) I'd probably be doing stuff like painting walls, painting kitchen cabinets. Replace any old carpet with newer carpet or laminate in key rooms. You may not have enough $$ to do flooring in all rooms unless is very low sq. footage. Maybe replace a few old, outdated appliances that are high risk to fail in short term. You can probably also do a light update on the bathroom with a new vanity + mirror and some lighting.
If you are willing and able to DIY some of the work, and source scratch and dent appliances you money will stretch further but it will be more time and you need to be confident in the quality of your work.
Again, you need a place to have a plan but those are the "low hanging fruit"
Obviously avoid anything that needs major plumbing or electrical. In older homes this can be tricky as issues often crop up post-sale. Make sure you have contingency in your budget for the inevitable leaky faucet, broken toilet, flooded basement, dryer death, etc. etc. (I've had all four of these happen at once!)
If I purchased a property for rental that required 10,000 in rehab, exactly what work can I do? I know it may varied depending on the condition of the house, but 10,000 seems like somewhere between light-avergae and it would be really helpful if someone could paint a bigger picture for me to understand.
It depends on where it's located and what type of property it is. $10,000 in rural Alabama vs. $10,000 in Manhattan will get you varying results. You really need to be more specific.
The simple truth is that $10,000 is not going to get you much of a rehab at all. I don't care what area of the country you are in, how big your house is, etc. (Those factors will obviously stretch how far your dollar goes.) That is a light cosmetic rehab (paint, some flooring, cosmetic upgrades, etc.) and the house needs to be in pretty good shape. (I've been doing this almost 12 years and I think I've had maybe one $10k rehab). Sure, you can stretch it and defer but a lot of the times all you are doing is kicking the can down the road. Obviously, if you're doing the work yourself, that's a different story and you're basically a contractor and trading your time for money.