HI
I am just wondering how any one went about renovating there IP when they dont live in that city, ie costs of flts accom etc or do you just accept it as expenses that come out of your profit. I would love to know how people budget that in if a reno is going to take 2-3 months.
I am working on steves formula Problems + Solutions= Profit
and at the moment the main concern is Distance we are in Brisbane and IP in Townsville.Any help or stories would be much appreciated
We have properties interstate that I've never seen, and up until now we have simply let the P.M get quotes and get the work done, then deduct the payment from the rent.
Works for me.Something larger like that is different I guess, but maybe it can still be handled the same way.
Talk to your P.M and ask them if they have had any experience with other Landlords in similar situations, and what they did to get the work done.
We lived 1500 km away from our first two IP. One could be kindly described as the 'worst house in the best street', a house split into 3 flats. I should preface this saying we bought it 5 years ago, borrowed 100% of purchase price but it has been CP+ from day one. We've been fortunate enough to see some good capital growth too. While Steve hadn't written his books back then in retrospect it fitted both the 11 second solution (lucky!) and problem + solution = profit. The previous owner hadn't done any maintenance for years and couldn't be bothered doing it.
We pay for contractors to do the urgent repairs or things we can't do ourselves eg wiring/plumbing, and there were some extra expenses right at the beginning, eg the whole property needed rewiring. Then as we like to holiday near where we own the properties anyway and don't mind doing the "adding value" things like painting, tiling, etc, we combined 1 week holiday + 1 week renovations and timed it for when a flat was vacant if possible. It added the cost of accommodation for the extra few nights (tax deductible) and used our time but saved thousands compared to getting someone else to do the work.
Now we live only 200km away from the properties so it is more practical for us to do a weekend or a few days so we are gradually improving the street appeal and we upgrade the flats internally a little each time they are vacant. We have seen the vacancy rate drop and rents increase through doing this. Does cost a bit in travel / accom but the increase in annual rent compensates.
Kylie
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