- Joined
- Oct 24, 2007
- Messages
- 2,289
What do you do?
Most investors I know are apprehensive about buying a property and then turning around and putting between 5 and 10% of FMV back into it to set it up for a solid long term hold with few recurring maintenance issues.
I tell them that 'no one will sell a trouble free asset in a good location at a price that cash flows well'. That's what everyone wants but that deal is very seldom found.
I'm curious to know how important good condition is to the REIN buyer.
Two questions:
1. If it cut your cash flow by 30% would you pay a premium to get a property that had zero issues on inspection and all the wear items (flooring, bathrooms and appliances) updated?
2. For those investors that do business in illegal secondary suites would you pay more for a legalized property if one were to come up for sale? (they never do) How much more than a comparable illegal suite? 5%? 10% 20%?
In the used car market dealers charge more for 'certified' used cars that go through their repair shop. Do you think the same would be true in investment real estate if such a service existed?
Most investors I know are apprehensive about buying a property and then turning around and putting between 5 and 10% of FMV back into it to set it up for a solid long term hold with few recurring maintenance issues.
I tell them that 'no one will sell a trouble free asset in a good location at a price that cash flows well'. That's what everyone wants but that deal is very seldom found.
I'm curious to know how important good condition is to the REIN buyer.
Two questions:
1. If it cut your cash flow by 30% would you pay a premium to get a property that had zero issues on inspection and all the wear items (flooring, bathrooms and appliances) updated?
2. For those investors that do business in illegal secondary suites would you pay more for a legalized property if one were to come up for sale? (they never do) How much more than a comparable illegal suite? 5%? 10% 20%?
In the used car market dealers charge more for 'certified' used cars that go through their repair shop. Do you think the same would be true in investment real estate if such a service existed?