Cash Flow Property Maintenance and Repairs
How To Avoid Losing Money
Investing and owning real estate rentals is NOT like owning stocks or bonds. You are dealing with an asset that actually exists in space-time. This asset is subject to the forces of nature and time. This is why you have depreciation and other beneficial write-offs.
Deferred maintenance is absolutely unavoidable, anyone that ever tries to sell you an investment property and says it needs no deferred maintenance is either a liar or a fool. Even the classic “turnkey” rentals will need maintenance, all properties need maintenance. Deferred maintenance can be anywhere from a $20 fix to a $1,500 fix. It all depends on what condition the property is in, what is updated and outdated, good tenants or bad tenants, the age of the property, weather conditions, etc.
They key to minimizing your deferred maintenance cost is to invest in standard quality cash flow properties and to screen your tenants so you can avoid the destructive renters, and BIG dogs.
If you are doing the rehab yourself do not cut corners, it will cost you twice as much down the road. Some materials are designed on purpose to wear out in 1-2 years.
Items that need to be in good working condition:
- Roof
- Flooring
- Electrical
- Plumbing and water tanks
- Doors and windows functional
- Lighting attachments
- Furnaces
- Paint
- Toilets and shower
- Bathroom and kitchen drains, the stack and the sewer drain the the basement (Not clogged)
- P and S traps
- Faucets, sinks, traps, valves.
- ALL PLUMBING VALVES SHOULD BE QUARTER-TURNS, not the old wheel knobs.