When buying investment property, do you know which repairs can be overlooked? What can you fix on your own? And what can be overlooked altogether? No matter what, you’ll need to maintain a safe and livable environment for your tenants to promote tenant retention and reduced vacancy. In our latest post, learn about the repairs you should overlook as well as the ones you shouldn’t.
As a Fort Myers real estate investor, success hinges on finding properties that strike a balance between affordability, rental income, and manageable upkeep. While some cosmetic issues might not deter tenants immediately, extensive repairs can drain profits. The key is to prioritize repairs during your cost analysis. Look for properties with solid bones – a functional roof, good foundation, and sound electrical and plumbing systems. Issues like outdated fixtures or a dated kitchen can be addressed later and may even be attractive bargaining chips when negotiating the purchase price. Factor in preventative maintenance costs as well, budgeting for regular upkeep like gutter cleaning and furnace inspections. By prioritizing repairs that impact a property’s functionality and livability, you’ll find an investment property that delivers strong rental income while minimizing the drain on your wallet. Remember, a well-maintained property attracts good tenants and increases its value over time, making it a win-win for your investment portfolio.
Cosmetic Issues
While an unattractive building might deter potential renters, the good news is that cosmetic repairs can be tackled gradually and don’t require a huge upfront investment. For instance, you can address eyesores like peeling paint, worn-out carpets, or outdated fixtures one by one. These improvements are often manageable within a weekend with some dedicated effort. A fresh coat of paint, new flooring in a common area, or modern light fixtures can significantly enhance the overall impression, making your building more inviting and appealing to renters. By prioritizing these types of cosmetic repairs, you can improve your property’s value and attract tenants without breaking the bank.
Dated Design
This falls under the cosmetic category, similar to makeup or hairstyling. Just like outdated makeup trends can make someone look dated, certain home features can turn potential buyers away. Think of things like overly busy wallpaper, dated window treatments, or an abundance of mirrored walls. These elements, while undeniably cosmetic, can create a strong first impression that lingers. The good news is, unlike structural issues, these cosmetic flaws are relatively inexpensive to fix. It might be a matter of swapping out the blinds, removing a dated wallpaper border, or opting for a more neutral paint color. The key takeaway is that styles change, and as long as the home’s foundation is solid, potential buyers can usually overlook cosmetic quirks and envision themselves personalizing the space to their taste.
Some Cleanliness Issues
If a house should come with a hazmat sign, it’s best to stay clear. But if a house just needs a good cleaning, it might be worth giving a second look. Stained and dirty grout can immediately make you think the house is moldy or filthy, but that is not necessarily the case.
That said, nobody wants to buy a house of filth. There is always something else on the market. If the house is borderline disgusting, it is probably in your best interest to move on. If they couldn’t clean, they probably weren’t performing maintenance to the home. Plus, there are very likely going to be pests found somewhere within the home.
Loose Fixtures
Loose fixtures can give the impression that things are old and worn out. But always keep in mind that a wobbly railing can always be tightened as can a loose sink knob or cabinet handle.
Some Heating and Air Issues
Air conditioning and heating units can be very costly to replace. However, many repairs are done at very low costs. Before passing on a house because of a heating or cooling problem, find out exactly what’s wrong to determine if you should move on or make an offer.
Old Cabinetry
Old cabinets can be refinished or repainted rather easily. Adding new fixtures to the cabinets including knobs, handles, and hinges can give old cabinets an entirely new look. As long as the cabinets are functioning and good shape, everything else can be taken care of. And if you still aren’t fond of them, they are always something that can be replaced down the road.
Never Overlook…
When buying investment property, never overlook structural issues, a bad roof, drainage problems, or a sinking foundation. These types of repairs can be incredibly costly to fix and may end up costing you much more than you had anticipated.