Repairs on 1940s and1950s midwest properties are eating returns

[Alana Nevares]

We have few single families in University heights, Euclid and Garfield Heights. 

We should be making about 200 per door each month, however, repairs are compromising the returns. 

One of the properties was acquired 7 months ago and just had an 800 dollar bill on repairs (window, gutters, doors, and few other items). When do you know that it is time to let go from the property and that repairs are too many to hold on to it? Should I expect this with all 1950s properties? What can we do to minimize this.

[Mark Fries]

@Alana Nevares

I think the 1st mistake you made was thinking that $200 per door would even be profitable on a 1950s home..

If your goal is $150 or $200 per door then you need to be looking at turnkey new construction investments, not homes that are 70 years old.

I would assume your strategy is the BRRRR method? Unfortunately the probability of this strategy working on a home built prior to the 1990s is crazy low... and if you couple this strategy with a property manager you can basically forget it..

I know lots of people that do this strategy but it's more of an appreciation play or a tax strategy.