Fill in pool?

[Account Closed]

hi- I just bought a sfr4/2 in Tempe,az. The goal is to rent itthere for 2 yearsrehab it and then Sell it. The house has a fairly narrow backyard that is basically all patio and pool. The pool pump is shot and the concrete around pool is cracked. Looking at $2,500 in repairs to bring up to speed.  I've thought about filling in the pool and having a useable backyard, cost is $5,000

I've gotten 50/50 response from friends and family and wanted to see if I could get some feedback from folks here....fix the pool and keep for $2,500 or so ....or fill in and have a yard for $5,000?

Thanks!!!

R

[Lauren H.]

What do the neighbors have? If neighboring SFRs have pools then you might need one in order to compete for both phases of your plan on this deal. 

Have you run ROI for both scenarios?

Consider not being able to predict maintenance costs for the 2 year rental period. Try to predict the cost and factor it into ROI, but aim on the high side just in case. Mitigate during the rental phase by having the tenant pay for regular pool maintenance, otherwise up the rent slightly in order to cover it.