The problem with just slapping paint and carpet on a rental

[John Chapman]

I've been landlording a while now and I've now come to the conclusion that unless the numbers support a full rehab (and by "full", I mean completely redone the way I want it), I'm not interested in doing it.  I've bought one or two properties where I fixed them up, but the numbers didn't support a full rehab so I told myself that's fine, I'll just gradually fix it up over the next couple of years.  (I was probably a little more deal hungry at the time so I deluded myself into thinking this was a good idea.)

The problem for me is that I would forget about it (or in my mind downplay what I needed to do), the unit would come vacant in a year or two, and then I would be looking at a very large "make-ready" (I put "make-ready" in quotes because the bulk of it is simply deferred rehab.  That large "make-ready" invariably comes due at the absolute worst possible time (like all deferred maintenance) and ruins your numbers for the year.  I kind of view it like a financial grenade waiting to go off.

If you are still in the acquiring mode, these kinds of grenades can really put a damper on your plans.  This all pretty obvious stuff, but I think psychologically it's pretty easy to fall into this trap, particularly when the downside is a year or two away.  I've since stopped doing this after getting slapped in the face a couple of times, but maybe others can learn from my mistakes.