Hello everyone and I appreciate your help in advance. I recently bought a property and I plan on using BRRRR. I need to buy appliances...refrigerator, stove, washer and dryer...my question is, should I buy new appliances with insurance or should I buy old appliances?
If you are going to keep the unit as a long-term rent and hold, buy new.
What is a 'used' appliance? It's not like a car that people trade in every few years because a newer, nicer model came out. People tend to keep their appliances until they start to go bad, or it's a major remodel. Normally you are lucky to get a 30--60 day 'warranty' on these things.
From experience, you are better off getting new for long-term hold.
If you are going to keep the unit as a long-term rent and hold, buy new.
What is a 'used' appliance? It's not like a car that people trade in every few years because a newer, nicer model came out. People tend to keep their appliances until they start to go bad, or it's a major remodel. Normally you are lucky to get a 30--60 day 'warranty' on these things.
From experience, you are better off getting new for long-term hold.
@Daivis DeJesus I buy new appliances for my rentals but how are you buying appliances with insurance? Was there an insurance claim after you purchased the property?
@Daivis DeJesus ohhh...ok, so if you are buying a new appliance the factory warranty is usually good enough. No need to get an "extra" warranty that they sell if you are following me.
Try buying "like new", minor blemishes, no warranty of course, but if is a good brand and they are truly selling "like new", you shouldn't have any issues plus a great discount! I try to avoid craiglist or similar.
@Daivis DeJesus I prefer to buy new appliances and I never buy the warranty. Very often warranties are hard to redeem and you would just be better off setting aside the warranty money, For the 1 in 10 times the warranty pays, you have have saved enough money the other 9 times to more than cover the repair cost.
Also keep in mint that in rental properties, appliances need replacing due to damage. Warranty will not cover misuse or damage.
Daivis, congrats on your first rental purchase! In my opinion I would buy new appliances. This will be less of a hinder on your property manager in case one of these items were to go bad.
Also, why not start with something new to attract better tenants!