Fridge upgrade or no? Stainless steel $1800 fridge for $800?

Question

Hello! Right now my partner and I are house hacking a duplex that we hope to move out of and start renting in a year. The duplex is in a solid B neighborhood in Chattanooga, TN and we're hoping to get ~$1000-$1150 a month. It has a backyard, a garage, new bamboo floors, and is a 2 bd 1.5 BA.

Our decision is this: we'd like to purchase a fridge so that we have two for ourselves. If we're going to take it with us in a year, we'll happily buy a cheap $200 used one off of Craigslist. OR, we could buy a $800 stainless steel French door fridge from our local used appliance store that is discounted from $1,800 and leave it in the rental unit when we move out in hopes of it upping the rent/attracting tenants.  It works great and looks amazing. I guess my question is: is it worth it to pay $600 more for a fridge that is significantly better then the one we have for a rental? Can you actually up the rent because of the fridge/ does it really make a difference to the tenants? If we could charge $25 more a month, the fridge would pay for itself in 2 years... our current fridge is a little typical white two door cheap fridge.

Thanks for your input!!

Andrew Ashby · Answer

@Lydia Fogo, I agree with @Brian Levredge, @Russ Smith, and @William Allen on this one about the overall kitchen and appliance package. A full stainless appliance package can definitely set your unit apart from others rather than a single stainless appliance. I saw that you mentioned a used appliance store, but have you considered Sears' Scratch & Dent right there in Hixson? I've bought stainless appliances there for less than 50% of retail, including a fridge for about $400. This is the before and after picture of my Section 8 Chattanooga duplex; the response to the vacancy ad was overwhelming and I think the SS appliances played a huge part in that (despite its location in 37406):

Russ Smith · Answer

I'm not sure if just the purchase of a nicer fridge will allow you to increase the rent.  If going with stainless appliances is part of an overall plan to upgrade the unit and the kitchen to be nicer/more modern, then I would say yes.  If the rest of the appliances are white and you have formica countertops with no plans of re-doing the kitchen, I would just stick with a white fridge.  I have a property that I've owned for almost 15 years and back when I first bought it, I went with white appliances.  The surrounding neighborhood has changed for the better over the years and I've been upgrading the appliances to SS as the old ones die.  Now that the neighborhood commands a higher rent and attracts good tenants, having SS dishwasher, fridge, stove, micro helps set my house apart and I feel is worth the additional cost.  Hope this helps.

William Allen · Answer

A nicer fridge may get someone to like your place over another but rarely will that be the reason for a higher rent price. I also agree with matching your appliance package.

Brian Levredge · Answer

I have stuff all over town and manage a lot more in and around Chattanooga as well.  There are not many places, generally,  where you'll get that price range on a 2 bed.  Normal Park is one and the Southside is another.  You can get the lower end of that range in E Brainerd as well.

The fridge, by itself, won't really get you a premium in rent.  As Russ said it also depends on what the rest of the kitchen looks like.

Andrew Ashby · Answer

@Lydia Fogo, I only have access to the Florida MLS so I would defer to those who have access to the Tennessee MLS...but I would suppose $800 or $850 for a nice 2 bed in Hixson.

Lydia Fogo · Answer

Thank you all so much for your replies! Its very helpful to hear veteran investor's line of thought of these types of decisions. To those who mentioned they were investing in Chattanooga (@Brian Levredge and @Andrew A. I believe), what would you say a 2bd 1.5 ba remodeled duplex in a B neighborhood in Hixson might reasonably rent for? We've put in hardwood floors and it also has a garage and a backyard. Thank you so much for your insight.

And @Andrew A., funny enough we were actually looking at the Sears Scratch & Dent! We were definitely looking at the nicer french door type of fridge, so it's nice to know that you went with the $400 SS fridge for your duplex--we were looking into those options as well. I guess the SS front is more important than it being fancy/huge!

Fridge upgrade or no? Stainless steel $1800 fridge for $800?

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