First rental investment

2 Replies

Hello BP, I am looking at my first deal SFH in nice neighborhood that just needs miniature paint and flooring redone. I am looking to buy hold some years , then see if I want to sell after 3-7 years. . Two part question: 1. I am trying to first see if the deal numbers work out, so what is the best way to calculate capital expenditures? 2. This house is the only 5 bedroom in the immediate area, so should I expect to charge rent at the high end of the spectrum? Thanks !
@Canel Cole well I’m just getting started myself. I think we need to know some more. Like what market are you in? Second, dial for dollars! Pick the phone up and call contractors to price the work, or hit Home Depot and price materials if you’re doing it yourself. As for what to charge for rent, idk how many people “need” 5 bedrooms. I’d say maybe they want the extra room as a luxury like an in home office. Or maybe it’s a large family or multi generational family. Either way it’s a small niche. I’d also caution you on you’re maintenance costs. 5 bedroom probably means more bathrooms, a physically larger house with more plumbing, roof tiles, larger hot water heater etc. And just something I was thinking on today. What if I found a SFH and could make it into a top & bottom duplex if both levels were finished? Hope those thoughts help! Good luck!