All Forum Posts by: Account Closed

Hi BiggerPockets Community,

I currently live in California and renting a home here. I’m considering purchasing a home in Tennessee as a vacation property, and I’m wondering about the best approach to take in this situation.

My intention is to use it primarily as a vacation home and not as an investment property. However, when I’m not living there, I’d like to know if it would be feasible to rent out some of the rooms to visitors.

A few questions I have are:

1. How many days do I need to reside in my vacation home each year to maintain its status as a second home and not cross into investment property territory?
2. Are there specific guidelines or tax implications I should be aware of based on how I plan to use the property?
3. Any tips for managing this property as a second home while considering occasional rentals would be greatly appreciated.

Thanks in advance for your insights!

Best,

Philip

Hi BiggerPockets Community,

I currently live in California and renting a home here. I’m considering purchasing a home in Tennessee as a vacation property, and I’m wondering about the best approach to take in this situation.

My intention is to use it primarily as a vacation home and not as an investment property. However, when I’m not living there, I’d like to know if it would be feasible to rent out some of the rooms to visitors.

A few questions I have are:

1.  How many days do I need to reside in my vacation home each year to maintain its status as a second home and not cross into investment property territory?
2. Are there specific guidelines or tax implications I should be aware of based on how I plan to use the property?
3. Any tips for managing this property as a second home while considering occasional rentals would be greatly appreciated.

Thanks in advance for your insights!

Best,

Philip 

@David Peschio Thank you for your response! It's incredibly helpful. I will proceed without the warranties.

@Berenger Greer Thank you for your advice! Based on your experience as a property manager, I understand how frustrating warranty programs can be. The misdiagnoses and delays in service definitely make it challenging when an appliance like a fridge breaks down. It’s also helpful to know that repair costs often come close to the price of replacing the appliance. I appreciate your insights and will take them into consideration moving forward!

Hey fellow landlords,

I hope you’re all doing well! I recently purchased several appliances (a dishwasher, stove, and microwave) from Lowe's for my rental property, and I'm at a crossroads on whether to invest in the additional warranties they offer.

On one hand, I'm aware that appliances can sometimes go haywire, especially in a rental setting where they might see heavier use. The added peace of mind that comes with a warranty sounds appealing, but I also want to be prudent with my expenses.

Here are a few specific questions I have:

1. **Past Experiences**: For those of you who have purchased warranties, have you found them to be worth it? Were there instances where the warranty saved you a significant amount of money on repairs?

2. **Typical Failures**: What common issues have you encountered with these types of appliances in your rental properties? Do you think they justify the warranty?

3. **Cost-Benefit Analysis**: How do you approach the cost versus potential savings when it comes to appliance warranties?

4. **Alternatives**: Have any of you opted for a different approach, like including appliance repair costs as part of your maintenance budget?

I'd love to hear your thoughts and insights on this! Your experiences will greatly help me make an informed decision.

Thanks in advance!

Best,

Philip

@Jaron Walling 

Thank you for your insights!

The quote I received was just for the kitchen, which is why I was taken aback by the amount. It feels excessive for such a small space. As for the condition of the property, there are no significant structural issues or unlevel flooring, thankfully. We are planning to demo the entire kitchen, remove the existing stackable washer/dryer to another location, and add a dishwasher. 

I appreciate your suggestions on rental-grade renovations. I’ll definitely look into cabinets from big box stores, as they can be much more budget-friendly. Waterproof flooring sounds like a smart investment, and I agree that matching countertops to the neighborhood is key. I hadn’t considered how impactful a tile backsplash could be, so I’ll keep that in mind as well.

Your point about addressing the unseen renovations is particularly valuable. I’ll ensure that the electrical panel and plumbing are checked thoroughly to avoid any future issues.

I also completely agree about the importance of paint. I’ll prioritize that in the overall budget, especially for the ceiling. Setting the right expectation is crucial to attract quality tenants.

Thanks again for your advice! I’m feeling more informed about how to approach this remodel.

Hello BiggerPockets Community,

I hope this finds you well! I’m currently considering remodeling the kitchen in my rental property, which is quite outdated. The kitchen is small, measuring just 8x10, and I’ve received a quote for the remodel that totals around $40K.

I’m feeling like this quote is on the higher side, especially since it’s a rental property and not the forever home I plan to live in myself. I want to improve the space to attract tenants and increase rental value, but I’m also looking for ways to keep the costs reasonable.

I would love to hear your experiences and advice regarding:

1. **Budgeting for a Small Kitchen Remodel**: What are some cost-effective strategies you’ve used?

3. **Must-Have Upgrades**: What renovations do you believe bring the best return on investment for rental properties?

4. **Where to Splurge or Save**: Are there specific areas in a kitchen remodel where it’s worth spending more, and others where you can cut back?

Any insights or personal experiences you can share would be greatly appreciated! Thank you in advance for your help!

Best, 

Philip  

Quote from @Andrew Syrios:

I would go with a vertical fence probably, especially since that's what most of the neighbors have and it would stick out. Horizontal are more expensive and at least for me, don't really look right. Maybe I'm just old school but I'm not a fan. That's my two cents at least. 

I appreciate your input! A vertical fence definitely has a timeless look, and it makes sense to go with something that complements the neighborhood. Thanks for sharing your perspective!

Quote from @David Krulac:

This year we had a heat pump cleaning, testing refrigerant charge (didn't need any added) and a capacitor replacement, bill was $157.05, factor I consider are the age of the existing unit, if it needed a charge, potential leak, cost of refrigerant (over the years there have been many varients of the type of refrigerant).  There is always the risk that after you do the repair, the the system fails quickly after that.  We have had systems fail and need replacement as soon as 10-12 years, and others lasting 30 or more years. 

Thanks for sharing the details about your recent heat pump service! I appreciate the insights on the costs and factors to consider. It’s definitely helpful to know about the variability in unit lifespan and potential issues with repairs.

Quote from @Garrett Brown:

How big is the home? I would replace it, in my personal opinion, for quite a few different reasons—happier tenants, less stress on you, etc.

I appreciate your perspective on replacing the HVAC system. I agree that happier tenants and less stress would be great benefits.