Recently, my husband and I bought a duplex with the intention of living in one side of it. We bought a real dump. It was painted four awful shades of green outside, the yard was overgrown with hideous succulents and nothing had been updated in the house since the 80’s when wood paneling and ceramic towel racks were all the rage.
But something about the house called to us. We had to buy it.
The first month we spent rehabbing the second unit in our spare time. We painted, put up a few new cabinets, installed a built in microwave and updated the bathroom with a new vanity, toilet, medicine cabinet, light and flooring. After spending around $2,000 we had created a masterpiece.
With the simple changes we were able to make in our spare time, we were able to double the rent that was charged for that unit. That made the whole investment financially worthwhile.
Our tenants are wonderful. Great tenants migrate to great apartments. The nicer your apartment is, the higher rent you can charge. The higher rent attracts a different caliber of people. My family had always had success with investment properties because they are willing to spend the hard work it takes to make it the best place on the block and attract the best tenants possible.
So what’s the secret you may ask? Well, the secret is in the hard work or at the very least the want to make your investment property a nice place to live. Being a slumlord isn’t fun. Being a landlord is.