Appliances - New or Used?

[Tiffani Hollis]

This is my first major rehab and I'm trying to be creative about stretching my budget. It needs all new appliances. I see some great deals on FB Marketplace - Is it better to buy one used (obviously making sure it seems to work first) and pay for repairs later if necessary OR buy new and have the warranty? This is a property has been in the family a long time and I'll be holding onto long term as it turns a good profit.

[Kevin Sobilo]

@Tiffani Hollis, a few thoughts:

1. Dealing with warranty service is a pain in any situation but when you also have to deal with a tenant on top its even worse. So, a warranty doesn't mean a whole lot to me.

2. In my experience stoves and refrigerators have WAY less issues than washers, dryers, and probably dishwashers. 

3. People care more about the appearance of kitchen appliances because they are in a public portion of the house as opposed to washer/dryers which visitors rarely see.

4. I am more inclined to buy new kitchen appliances because of #4, but would not have an issue using nice looking used kitchen appliances. I am more likely to go with used kitchen appliances on a C class rental than a nice B class rental.

5. I routinely buy used washers and dryers. Basic white appliances. If they are dinged or scuffed you can touch them up with white appliance paint. I believe its an epoxy based paint.

6. Keep in mind that you get to depreciate these appliances on your taxes. So, you get a tax deduction on the purchase price. So, keep in mind this tax deduction is basically like getting a discount on the purchase.