Are you proactive or reactive in your investments?

[Ryan Dossey]

Proactive: (of a person, policy, or action) creating or controlling a situation by causing something to happen rather than responding to it after it has happened.

Reactive: showing a response to a stimulus. "pupils are reactive to light" Acting in response to a situation rather than creating or controlling it.

In talking with investors there appear to be two separate schools of thought. I am curious what you personally apply and find most effective. I would like to hear both sides of the debate and pros/cons. 

Side 1: You buy a home that needs rehab. You do the required cosmetic and deferred  maintenance the home needs to get it rent ready. Not slum lording but you don't do anything extra. You wait for a problem to come up and fix it.

Side 2: You buy a home that needs rehab. You do the required cosmetic and deferred maintenance the homes needs to get it rent ready. You also replace systems/appliances that are aging or will need work shortly. 

Rationale 1: Your upfront costs are lower but I could see this being more of a headache always fixing things. 

Rationale  2: Things should run smoothly for the first few years however unexpected expenses could be more frustrating. Your upfront costs are greater. Drawback is you could potentially be replacing systems that could have gone several more years.