I have sat back and I am learning lots from your wealth of experiences…Thank you
I have just purchased my third PI and am wanting a rule of thumb of how much to allocate for the dreaded maintenance.
Thanks
Jenny[confused2]
Jenny Jordan
Originally posted by Jenny1:I have just purchased my third PI and am wanting a rule of thumb of how much to allocate for the dreaded maintenance.
Hi Jenny,
There is NO rule of thumb. Someone might need to replace a door knob. Another might need to replace the roof.
The way to assess each property is b4 you go unconditional on it, you have a building inspection done and the report will tell you what is required and how much that builder believes it will cost. Some reports show that the property is in sound condition and no maintenace is needed. As I’ve said b4 in another post, one of my properties that I wanted to get, the report stated that it needed $30k worth of work.
The best way to do it is that if you purchase a +CF property, have the rent go back into the account and leave it there – don’t re-draw on it. Leave it there just in case in the future it is needed for maintenace. However, I like to keep $10k on the side always for emergencies.
Hope this helps,
Kind Regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Jenny,
This post pobably belongs in the Help Needed Forum. If you already have 2 IP’s, then you’d have some experience in maintenance/repair expenditure from those. If this new property is similar to those in condition/area/price, you could just think how much you’ve spent on the other two properties and average it out. That’s one way.
kay henry
[biggrin]Many thank for all your help, I suppose I have been just lucky and have had only had minor repairs.
But I will take note and put money away for a rainy day (in case the roof leaks..that is if we ever have any decent rain!!).
Thanks again Jenny
Jenny Jordan
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