My brother and I have invested into numerous rental properties.
Along with the purchase price of the rentals, we’ve spent a great deal of money on renovations.
Our hope was to pick up properties at affordable prices and make improvements to increase their value. Since my brother and I are quite handy, we can complete most of the updates, repairs and maintenance on our own. Because of the demands of these older buildings, we’ve learned a lot about plumbing, electrical lines, heating, cooling and general contracting. By necessity, we’ve accumulated a wide range of tools and inventory of materials. The cost of hiring professionals is often too high to ever recover the investment into renovating a kitchen, bathroom or even painting bedrooms. The rent typically covers the mortgage. It doesn’t pay for a plumber to install a toilet or a general contractor to replace windows. My brother and I watch for sales on appliances and building materials. Every time a renter moves out of an apartment, we try to make some type of improvement. We’ve learned a lot from watching Youtube videos and hands-on practice. We now know how to install a shower pan, run drain lines, run electrical lines, replace light fixtures, install ceramic tile floors and hang drywall. We’ve saved a great deal of money through DIY efforts but we’ve also donated a great deal of our time and effort for free. It’s very discouraging when the renters don’t take care of the property. When they move out, we always find a great deal of damage. Because they aren’t regularly cleaning appliances and fixtures, they don’t last as long.