Appliances for rental properties

[Tassia Fisher]

I could use some advice on purchasing appliances, replacing or repairing AC unit on a rental property. How much do you typically spend on these items when rehabbing a rental property? 

[Michael Guzik]

@Tassia Fisher That's a great question and one that confused me when I started looking into REI. It all depends on your market and your capital that you have. Some markets in A or B areas tenants expect you to have stainless steel appliances and if you don't they won't consider you. However if you are in D to B- it's really up to you. You can spend $1000 and get brand new ones in your units and charge an extra 50-100$ a month for them. Another option is just to provide the washer and drier outlets and require the tenant to get their own. If they bring their own they will be responsible for the maintenance and fixing of it, but you won't get that extra cashflow. If you decide to put your own in you will have the washer and drier paid off in 2 years charging an extra 50$ a month! The remaining time after that is pure cashflow which is a great return on investment in my opinion. The downside would be that typically they would expect you to fix it since they are your appliances. It all depends on how you want to approach things. I can speak from my management experience that people will gladly pay the extra 75$ a month for a washer and drier.