New roof and gutters.

New roof.

Note:                                                                       - Roofs are all OK- Two furnaces will need replacing w/in 5-8 yrs

Major expenses that are often overlooked are capital expenditure repairs, roofs, hot water heaters, HVAC etc. 

This contractor will take me from gutted house to ready-for-drywall (reframing, new siding, finished basement, new siding, new roof, new plumbing, new electric, new HVAC), at which point I will take over and complete the internals with my team. 

I would rather have 4 Class A properties than 20 Class C properties (20 roofs to replace, HVAC, more tenant issues, property management fees, AC unit stolen, etc).Wealth from real estate is built on appreciation and equity - look at all the multi-millionaires in coastal California whose property values have gone up dramatically over the years and our property taxes increase 2% a year from the base value (Proposition 13) compared to other states whose taxes go up a lot.

I have 2 rental properties(a 2 family home that I bought 9 years ago that needs new roof eventually and a short term rental a few hours away up north that has a 5.2 rate and is very updated) I used a cash out refi in 2021 for the 2 family to take out 25k(and it lowered my payment, went to a 3.2 rate for 25 years for the 2 family) and then used that 25k to buy a 240k cabin up north to use as a short term rental and family vacation home.2023 was the first full year for the cabin and it brought in 25k, however expenses were 36k, so 11k in the negative.

The lease states: Landlord agrees to make all necessary repairs to structural portions of the Premises, including the roof, exterior walls, foundation, and exterior sewer line.When preforming agreed upon repairs all the toilets were flushing and operating, not clogging.The tenant has been occupying the building for two months and emailed me yesterday saying that all the toilets were clogging.

New roof and windows, insulation etc don't really add much to ARV, but it makes for a better quality asset.

Something like: when the foundation is finished, the framing, electric and plumbing are in, roofing and siding, etc   They will usually hold back 20% or so until the house actually has cleared all permits including the final permit of occupancy.