vacant properties, worth a $24-$28K to fix and increase rent?

[Marichelle Lao]

HELP! my two vacant properties in Chattanooga, TN need some TLC, according to my PM it will cost $24-28K to get both rent ready. (New paint, inside/outside, new flooring, repairing/replacing cabinets, door knob, doorway, and some windows) From the pictures that were sent, all 36 of them didn't seem to drastic though. I don't know enough about repairs, I've been quite the passive (out of state) investor, and it didn't seem as though it would cost that much. After looking up my PM company online, I can't see much, and the social media presence shows that the company is more of a parking lot repair/build type of company. I asked if the cost of the repairs is like a rehab where the property value would go up, and the answer was "no." I asked for a lower quote from the contractor, but the PM said "everything in the bid is absolutely necessary" they cut about $900 off to clean/reinstall some light fixtures. Both properties are about 1200 sq ft and are 4 bed/2bath. after I asked for a lower quote, he came back with a payment plan, $13000 down, and then $2K/month/5 months to pay off, no interest loan from the contractor. He also said that after repairs, he would be able to rent the properties for $1200-$1400 but I think that the area is not the right place to be charging that much because they are the nicest on the block. I don't know if this is a good deal or if I should be looking for a new PM. Any advice or words of encouragement appreciated. Thanks for your time. 

[John Britt]

@Marichelle Lao it depends on the agreement you have with them.  Some companies want to handle all repairs, companies like ours do not typically handle full rehabs in house.  We offer to manage the rehab for the owner, but we also allow the owner to fine and choose the contractors themselves.  You can DM me and I can give you some people that I trust, and I know will do a good job even if you are out of town.