Long term rental repairs

[Aaron Heers]

Got this question from a friend:

“If you bought a house built 25 years ago. The plumbing could be okay when you buy it, but in 15 years it all needs to be replaced and that’s a huge expense out of your pocket.”

For all long term investors. Do you do frequent inspections of the foundation, plumbing, electricity, HVAC, and roof on your rentals?

What do you do to prevent these huge expenses that can kill a deal? (Other than factoring in capital expenses towards cash flow)

Any advice helps. Thanks!

[Paul Pratt]

Always good to keep tabs on the property, and to prevent issues from arising for example, wood rot, ac drain line/filer cleaning etc. 

At the end of the day they are expenses, but keeping them in good shape will greatly extend their life. Also, when you do update them, make sure to have a 4 pt inspection sent to your insurance agent. This will lower your premium sometimes enough to mitigate the upfront costs over the next few years.