All my Cashflow to Repairs & Maintenance this year!

[PJ Kolnik]

I knew that there would be good years and bad years and maybe a bit of something in between. I own a 3 unit in Chicago and cashflow about 350/month/unit after PITI. I figured that would keep me pretty well set.

When I bought the place I knew there would be stuff to fix, I just didn't think it would happen all in one year.

- Replace all 3 water heaters - $1500 for parts, ~$1000 for labor (had the plumber move some piping too to allow for future 3rd bedroom addition in the basement)

- Top unit, fridge went out! - $1750  - I know you're probably thinking - dang that's a lot for a fridge! Well I tried to go cheap and buy something off of craigslist only to get it to the front door and realize there was no way it was going to fit even with the doors off! These older buildings in Chicago have narrow doors and narrow staircases. I had to eventually pay the guy 70 bucks just to take the fridge back and then go to Lowe's buy a brand new, counter depth (measured everything to find this one that would fit) french door fridge... with delivery thankfully.

- Roof and Brick Repair - $4500 - my parapet wall was old and definitely needed to be fixed, I was just kind of living on a prayer until it really needed it. Well the roof sprung a small leak at the end of this summer and you don't want to mess with water so I went ahead and fixed both the roof and decided that while they were up there it was time to rebuild parts of the parapet wall.

- A few other small handyman calls - $500

I try to build good contractor relationships and make sure that we have a good dialogue throughout projects, but those costs still add up and I just don't have time to do all of these repairs myself. Anyone else have a lot go out on repairs this year? Any good strategies to deal with Capital expenses?

[Dennis M.]

Here’s the thing the get rich quick gurus leave out ..The first year is always going to suck Big time with repairs, insane inherited  tenants deferred  maintenance and just plain getting the property stabilized . If you go into each property accepting your not going to make a penny that first year ,you’ll rest easier knowing your breakthrough is coming soon  . Save for it ,Plan for it ,and accept it !