Apartment Improvements Upon Purchase

[Justin Hertzog]

I'm analyzing an apartment to purchase and there are some deferred maintenance items that will likely be pretty spendy in a few years. At least $40,000+. Does anybody have any advice on structuring deals to get these taken care of at the time of purchase or good ways to plan for them? Right now I'm using my own funds for down payments and have not used outside investors yet. I'm just curious if there are any strategies that I might not know or be thinking of.

[Bob Green]

Hello Justin,

As an investor I try to nip future issues in the butt right at the beginning. Especially if you are planning on acquiring additional properties, otherwise you may run into a situation where there are multiple issues going on at several properties at one time and it could get expensive.  My suggestion is to acquire property with a rehab loan and refinance after rehab is complete.