How much to spend on furnishings?

Question

I am purchasing my first property, a 2 bdr/2 bath condo in Taos, NM, walking distance to town. It's a nice place, built in 2005 w/ vigas, fireplace, radiant heat tile floors, enclosed courtyard, but no view.  I plan to live in the condo in four years, but I want to do distance (I live in Georgia) short-term rentals until then, managing them on VRBO, etc...  I'm thinking I could probably rent it for an avg. 90.00 - 100.00 a night.

I want to use higher-end furniture and linens because I want to use it myself a couple of times a year and eventually want to live there.  I've heard that tenants will take better care of nicer things, and take better care of things if they pay a higher rent.  Do agree?

At the same time, I face a lot of costs with this purchase, and I don't want to overspend on furnishing.  If I lived in the area, I would have time to shop flea markets and find bargains, but I will only have a few days to set it up.  I have a few pieces I can bring, but I still need mattresses, linens, a sleeper couch and chair, kitchenware, a rug, end tables, and lamps.  What is a reasonable amount of money to invest?

Mags S. · Answer

also check out wayfair.com

Zana Blue · Answer

I looked into the furniture rental places and they had low end cheap looking furniture...but if there was a furniture rental place that had higher end products that might be an option...the thrift stores here also have good quality wood tables and chairs it is just a matter of having the time to go look and then coordinating delivery and such

Colleen F. · Answer

Sleeper sofa, it depends, maybe if you get leather it will be durable but tears and ink stains  can happen. I wouldn't  go for it upfront but you need to do what works for you.  If you decide on leather I would not go with a light color though.

Also for the incidental tables etc, think sturdy and durable, painted pieces can be touched up.  If things don't look banged up they will take better care and if its well equipped you can get return visitors.

Melanie Sumner · Answer

Colleen -- "Things you spend money and things you don't...."  Exactly what I'm looking for.  Hate that I would need to replace the sleeper sofa - I want to get leather because it has worked best in my home, with kids and pets, but it's an investment.  Yes about the bed linens and kitchenware...  I know I can go local, funky, and inexpensive on the smaller pieces and art.

Melanie Sumner · Answer

Thanks Mag and Erin.  Wayfair is one of my shopping places, and it's great to hear numbers.  My place is 1100 sq ft.  I was thinking $5,000, but maybe I can get down.  The sleeper sofa, washer/dryer, and mattresses are my big expense items.

Colleen F. · Answer

How much you spend depends on your market.  Check out secondhand shops, get a list before you go.  There are things you spend money on and things you don't.  There are also a  lot of thing that  will be damaged in 4 years. For example depending on use you may want to replace a sleeper couch in 4 years.

So get good new mattresses and a durable couch. A good choice for a couch may be something stain resistant or with a washable slipcover. end tables, lamps, and accessories you can pick up easily at consignment shops.  Have decent kitchenware but it does not need to be great. Make sure it is complete though, the worst is renting a high end property and not being able to find a coffee pot or a cutting board...For decorations  you can change things up along the way so don't overthink it.   If you get nice bed linens that is half the space in a bedroom.  I think that when people travel that want to look at their rental and know they are in New Mexico or wherever they are so a local flavor will also help rent your place.

Melanie Sumner · Answer

Thanks, Luis.  I looked up the IRR link.  I am also shopping around the internet at some of the places you mentioned.

Luis Montanez · Answer

It all depends on the results of your IRR analysis. I bet you can shop for good high end furniture at low prices at Amazon.com, overstock.com, Walmart.com etc. Good luck

How much to spend on furnishings?

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