If you have been following this series, you know that we have been working like fiends to get our first rental property liveable for renters by October 1. If you’re new you might start by reading the previous posts.
If you don’t want to read all of those, you’re really missing out, but to summarize
- We purchased this property on August 24, 2012 for $63,000, with 25% down.
- We plan on spending $3000-$5000 on renovations.
- We hope to be done and have a renter by October 1.
- We are using a property management company and are asking $750/mo for rent
Well, October 1st has come and gone, and we are done. With a last gargantuan push this past week, we put the hardware back on the cabinets, cleaned up the construction mess, hung towel racks and a shower curtain, put in the counter tops and kitchen sink and faucet, got the stove and dishwasher hooked up, and painted the front porch. We also decided to put gravel in the front yard because the grass just would not grow. It shows poorly with a dirt patch in front of the house. The last of the electrical work was completed Monday after the electrician got sick last week. I didn’t want him installing electrical outlets in a fever induced haze, so I told him it was fine to come in this week. I’m now pretty sure no one will get electrocuted or catch fire, at least not due to faulty outlets anyway. I lost track of our hours, but hubby was around 20 this week, and I had about 8.
Now that everything is done, how did our expenses total up? Were we close to our estimated budget?
Painting Labor $751
New Gas Stove $456.19
Install Gas Stove and Replace Dishwasher Line $83.72
3 New Window Panes with Install $182.09
Window Cleaning ( I tried, but had to get help)$75
Counter Tops $350
Gravel for Front Yard $165.12
WalMart, TruValue Hardware, and Home Depot $1339.11
TJ Maxx $26.69
Electrical Work $1000
It came pretty close to our high end of the budget, but we didn’t go over. There were some things we could have cut out, like the new faucet or rock on the front yard, but we hope the small details will attract a good tenant.
As of now, we still don’t have a renter. I’m hopeful that this week we’ll get some good showings now that everything is done and in place.There is a couple coming back today for a second look. We are right on with comparables in the area, and ours is newly remodeled, so cross your fingers. We have already paid our first mortgage payment of $292.34, electric bill of $28.30, and water and sewer bill of $63.96.
If you are considering purchasing rental property, it is important to include any renovation and carrying costs you might incur. We fully intend to get this place rented ASAP, but if we had worst case scenerio and had to carry it for a few months, it wouldn’t break the bank. If you can’t make the payment without getting a renter right away, you really should save a bit more before purchasing. There are just too many variables to make it a sure thing. It’s been a ton of work, and right now, we are not ready to jump into another one, but give us a few months. Our goal of owning five rental propeties over the next ten years has begun.
What should we have done differently? Would you rent this place?