Real Estate Investing Forums

Real Estate Investing => Rehabbing, Fix and Flip, Rental Properties => Topic started by: gordo2417 on January 01, 2006, 02:24:27 pm

Title: adding appliances to completed rehabs
Post by: gordo2417 on January 01, 2006, 02:24:27 pm
How many of you buy new appliances when you complete your rehabs?  Do you get the value out of those appliances in your asking price?

Nate-WI
Title: Re:adding appliances to completed rehabs
Post by: rballard on January 01, 2006, 08:56:27 pm
To me, new appliances are a must. Depending on what type of home you're rehabbing, appliances aren't all that expensive. I generally stick to "starter" homes, so for around a thousand bucks a buyer can be impressed by having a new stove, fridge and dishwasher. I don't know how exactly you could measure the value of having the appliances, but my gut tells me it's well worth the money.
Title: Re:adding appliances to completed rehabs
Post by: gordo2417 on January 01, 2006, 09:15:08 pm
Skip the washer and dryers, hey?  

Nate-WI
Title: Re:adding appliances to completed rehabs
Post by: rballard on January 01, 2006, 10:36:33 pm
Depends on where in the house the washer/dryer are located. If the hookups are in the basement, definitely not. If you have a laundry room, it's more of a toss-up. I don't think there's a definitive answer, but consider this: if you're a buyer and you walk into a house with a $150k asking price, are you going to be more impressed with a house that needs nothing b/c it already has brand new fridge, stove, dishwasher, washer and dryer or one that you'll need to buy appliances for right off the bat?

The washer/dryer issue also depends on the kind of home. If it's a starter home, it's quite likely a first-time home buyer won't already own a washer/dryer. If it's a middle/upper class home, the buyer is more likely to have a washer/dryer.
Title: Re:adding appliances to completed rehabs
Post by: gordo2417 on January 02, 2006, 07:41:52 am
Good points.  The hook-ups are in the basement.  I'm thinking about running lines upstairs but there really isn't any room so downstairs it will have to be.  I think that if I have a new stove, fridge, and dishwasher that will certainly help.  If the new owner HAS to have a washer and dryer then maybe we can work that into the price of the home.  

Nate-WI
Title: Re:adding appliances to completed rehabs
Post by: graciez on January 06, 2006, 09:02:23 pm
I just did my first rehab and put used appliances in it.  Stove, Refrig, and D/W only in it.  I bought them from a local business that had been around for awhile and they guaranteed that they would work fine.  They were very clean and modern looking.  I did not put a washer/dryer in, but thought about using good used as negotiable items if I had trouble selling the house.   I payed around $500.00 for all three appliances.
Title: Re:adding appliances to completed rehabs
Post by: JeffInCT on January 06, 2006, 09:10:31 pm
I always do new appliances. I try to go a little higher end on the stove like a glass top if electric or pilotless and sealed burner if gas.  I've gotten good feedback on my choices.

Jeff
Title: Re:adding appliances to completed rehabs
Post by: rballard on January 07, 2006, 12:06:37 pm
I just did my first rehab and put used appliances in it.  Stove, Refrig, and D/W only in it.  I bought them from a local business that had been around for awhile and they guaranteed that they would work fine.  They were very clean and modern looking.  I did not put a washer/dryer in, but thought about using good used as negotiable items if I had trouble selling the house.   I payed around $500.00 for all three appliances.

Is that $500 per appliance or $500 total? Neither makes sense to me... $500 each is too high and $500 total is low.
Title: Re:adding appliances to completed rehabs
Post by: JeffInCT on January 07, 2006, 10:16:25 pm
500.00 for 3 used appliances is not unrealistic.
Title: Re:adding appliances to completed rehabs
Post by: gordo2417 on January 07, 2006, 10:34:16 pm
I'm looking at my local fishwrap right now.  I can buy a used washer and dryer and a fridge for 300 bucks.  Again its all relative.  Should I buy new or used.  Up to whoever is buying them I guess.  My feeling is if its not a rental and your looking to flip then used wouldn't be a wise choice.  But then again this is my first potential flip so what the hell do i know :-)

Nate-WI
Title: Re:adding appliances to completed rehabs
Post by: rballard on January 07, 2006, 10:48:15 pm
I guess I didn't account for them being used. I agree that for a rental that might be OK, but I hope you're not putting in used appliances for a flip.
Title: Re:adding appliances to completed rehabs
Post by: gordo2417 on January 07, 2006, 10:58:02 pm
No I would go new for sure.  I think I'm all set on this issue.  I'm going to buy a new stove and dishwasher and that's it.  If it comes down to it and they need a fridge and washer & dryer to close the deal then so be it.

Nate-WI
Title: Re:adding appliances to completed rehabs
Post by: BlueStarHomesInc.com on January 08, 2006, 01:58:58 pm
I definitely have appliances included.  I have a connection with a small appliance store that gives me used for cheaper than new, plus they look decent.  The homes I have dealt in are starter homes for new families so it could be the deciding factor if there are other homes comparable.  Do I get the $400-500 back in price?  Maybe, maybe not, but I do know it does help to sell quicker.  Just my two cents....

 :DJ
Title: Re:adding appliances to completed rehabs
Post by: gordo2417 on January 08, 2006, 02:04:02 pm
You see the house I'm gonna get into is about 75-80K ARV.  Lots of homes like this in this town.  My target audience is gonna be a single mother of two, or a newlyweds, or single parent of one, know what I mean?  I guess if I can find some used appliances that match then I could go that route.  This is a ways down the road so I have some time to think about it.  I close on the 18th and I'm giving myself 3 months to get this house ready for show.

Nate-WI
Title: Re:adding appliances to completed rehabs
Post by: graciez on January 08, 2006, 08:40:52 pm
That was $500.00 for all three used appliances and they had all been gone through and checked and cleaned.  They looked new and up to date otherwise I would not have put used in.   I think it depends on the price range some too of the house.  This was a starter home  2 bdrm in a small community that has lower income renters and I was targeting the $69-70,000 price range if I could sell it.  If I had to rent it the rent would have gone for around $575/month in this area.  I didn't care which happened I just didn't want it to sit empty.
Title: Re:adding appliances to completed rehabs
Post by: Afk11 on January 11, 2006, 05:18:36 pm
I will be buying appliances and good ones too..
 I know I am a newbie ..actually still looking for my first deal.
and don't have any experience ,yet ,but I won't compromise on this, from a woman's point of view..remember the wife chooses the house.
I want prospective buyers to love  the house and wanna hear  "aaaahhhh oooooohhh" ..got the drift ? LOL
maybe that's why my budget goes overboard ???  ;)  ;D
I have a $2100 budget for appliances.... :-[

Angela  
Title: Re:adding appliances to completed rehabs
Post by: gordo2417 on January 11, 2006, 05:27:33 pm
2100 bucks for appliances?  Must be made out of gold.  Ok just kidding with that one but that's expensive.  

Like my Dad told me the other day.  First thing a guy looks for is the garage.  The first thing a lady looks for is the kitchen.  My home will have no garage so the kitchen is going to look sharp.  Anyways the ladies wear the pants in the household and those who say otherwise are in denial.  Sorry gents.

Nate-WI
Title: Re:adding appliances to completed rehabs
Post by: Afk11 on January 11, 2006, 08:09:41 pm
 
 
Quote
2100 bucks for appliances?  Must be made out of gold.  Ok just kidding with that one but that's expensive.  

Like my Dad told me the other day.  First thing a guy looks for is the garage.  The first thing a lady looks for is the kitchen.  My home will have no garage so the kitchen is going to look sharp.  Anyways the ladies wear the pants in the household and those who say otherwise are in denial.  Sorry gents.

LOL..
oopps miscaculated  (better recheck my Budget )
I meant $1800

Fridge           $800
Stove          $600
Dishwasher   $400 (yes diswasher..Women want that!  )

Angela.

Title: Re:adding appliances to completed rehabs
Post by: John_NM on January 12, 2006, 07:14:32 am
Hi Nate,

I put used appliances in and I've had no problems, of course they are decent ones. In my opinion as long as the buyers have appliances they are happy. I'm sure there are more experienced investors out there who disagree with me but, I feel as long as you have good working/looking appliances you wont have any problems selling the home. Why spend about 2k (no offense AFK) for new appliances when you can get the same results with about a 1/3 of the price, remember it's your profit margin and I don't believe new versus old will be a deal breaker. As long as you have nice appliances it will sale.

Good luck,
John
Title: Re:adding appliances to completed rehabs
Post by: drcpr on January 12, 2006, 01:33:59 pm
Hi Nate,

I put used appliances in and I've had no problems, of course they are decent ones. In my opinion as long as the buyers have appliances they are happy. I'm sure there are more experienced investors out there who disagree with me but, I feel as long as you have good working/looking appliances you wont have any problems selling the home. Why spend about 2k (no offense AFK) for new appliances when you can get the same results with about a 1/3 of the price, remember it's your profit margin and I don't believe new versus old will be a deal breaker. As long as you have nice appliances it will sale.

Good luck,
John
....................

I have to agree
we only put new if we can't find appropriate used (color size etc.) W/D definately not putting money into that
I have had one new washer in my life (I'm older than dirt) & it broke after 3 yrs.

one house closing next week we didn't even put in a fridge - most lookers were measuring to see if theirs would fit!

I think yes women & kit & they are they are boss..... save new appliances for barganing....  & then get basic models
Title: Re:adding appliances to completed rehabs
Post by: Rich_in_CT on January 13, 2006, 08:12:01 am
There's a place near me that has nice used appliances, would be a good  choice for a starter home or rental.  If I was selling anything better than a starter home I'd drop an extra few hundred and pick out some pretty decent new ones, not low end and not $1000 each.  I think buyers might also appreciate the fact that they are putting the cost of appliances into their low rate mortgage and not on their credit card.
Title: Re:adding appliances to completed rehabs
Post by: drcpr on January 13, 2006, 08:31:10 am
"...I think buyers might also appreciate the fact that they are putting the cost of appliances into their low rate mortgage and not on their credit card. ..."

...........................

This is a good point I hadn't thought of  ;)
Title: Re:adding appliances to completed rehabs
Post by: JTinColumbus on January 15, 2006, 10:53:00 pm
I am including new appliances in my current rehab.  But it is mainly because of the type of rehab and sale.  I need the "oooh" and "ahh" factor to get top dollar in the area I am in.  If I was rehabing a rental or in a "lower rent" part of town, then used appliances would make perfect sense.  I believe it is the end product that determines which you use.
Title: Re:adding appliances to completed rehabs
Post by: Straightup on January 16, 2006, 02:08:19 pm
Great Thread!  My wife and I were just discussing this topic the other day.  

Jeff (Also in WI)
Title: Re:adding appliances to completed rehabs
Post by: gordo2417 on January 16, 2006, 03:19:57 pm
Jeff,

Where are you at in Wisconsin?  I'm in Appleton.

Nate-WI
Title: Re:adding appliances to completed rehabs
Post by: Straightup on January 16, 2006, 07:23:06 pm
Sending you an email Nate.  I'm just north of Madison.

Jeff
Title: Re:adding appliances to completed rehabs
Post by: VOODOO on January 25, 2006, 11:20:10 am
IMO if it was a rental i would put in new appliances, they will be cheaper in the end because they will last longer and have a much longer warranty, instead of having to replace used one every 2 or 3 years.
Title: Re:adding appliances to completed rehabs
Post by: Afk11 on January 25, 2006, 11:31:31 am
 I do agree it all depends on the area you are rehabbing.
But I am still set on new ones not used.
If it is under $100,000 like in your case (sorry didn't read it carefully) I would get less expensive appliances.

 BUt you do need a few things in the house that surprises any prospective buyers.you might not get the money back but you definetely stand a chance to sell it quicker.

my 2 cents  :)

Ang.