What's your avg move-out reno cost? Still cash flowing?

[Jen L.]

Hi investors,

My first tenant moved out after 7 years and it is costing me $7-8k to fix!  What's your average move-out reno cost?  And how many years of cash flow is it wiping out?  

This is my first move-out and I"m finding it extremely capital intensive.

Thanks!

[Ralph R.]

Jen L. Not surprising if you have carpet, need paint and so forth. There is a huge difference between vacancy ( lost rent) and vacancy cost. ( lost rent plus turn over cost). That's why walk through a are so important!!Now is the time to rent proof your property. Instead of carpet put in laminate or some other flooring. Use semi gloss paint. You can wash it sometimes and save some paint cost. Make sure your smoke detectors and co2 detectors are working. Put in the new smart locks to save re-keying cost next time. Take lots of pictures so you can recoup all tenant damage on the next turn over. Put in door stops to keep doors from hitting the walls. Just a few tips. Put in new toilet valves. I had a family with 8 not exaggerating here 8 children. Turn over was 8 grand. There was toothpaste on the ceiling!! My son was appalled. He said I was loosing money. Maybe but they paid over $40k in rent. Always on time and never late. In those days that house would set vacant for 2-3 months before renting. I was damn glad to trade 8k for 40k. In rent. Besides I was upside down in the property. The option was a short sale or give the house up. Lost money?? Probably. Today it cash flows after ALL expenses $300 a month. That's after the recent cash out refi. I took 21k out of that house last month. Wise investing? (At the time?)?Hell no! Better than the options I had back then? Yes. Welcome to land lording! RR