Buying Dilapidated Rental Properties

In this episode, John and Kyle dive into the complexities of buying dilapidated rental

properties and the subsequent decision-making process concerning renovations and

tenant management. They underscore the importance of having a concrete investment

strategy and the implications of property improvements on long-term equity and rental

yields.

Key Takeaways:

• Investing in dilapidated rentals requires a well-thought-out strategy concerning the

renovation timeline and its impact on rental income and property value.

• Acquiring a property at a discount should factor in future repair costs; these

expenses are part of the initial capital, not unexpected losses

• The decision to refresh a rental property can greatly influence tenant retention, repair

expenses, and eventual profitability.

Quotes:

• "And I think just from experience, you should be making a decision at acquisition.

Like when we do these acquisitions, we make this decision is, do we want to freshen

up this property at the beginning or at the first turnover or over time, which we

believe is the worst, a lot of people opt to do it over time." - Kyle

• "If you know it's going to take 30, $40,000 to fix this house up... the way to look at it,

is that $35,000 still needs to be considered in the initial price." - John

• "The specifics of your strategy could be the difference in ten years down the road

having 25 rentals and having five because of cost." - John

You can listen to We Are TPM on any major podcast platform including Apple

Podcasts, Google Play, Spotify, and many more.

Tune in today!

We Are TPM

Teixeira Property Management

Mansfield, Texas

www.WeAreTPM.com

[email protected]

———————————————————————————

There are a vast amount of ways in today's world to build wealth using real estate and

investing, not just in property, but in yourself!

Located in the Dallas-Fort Worth area of Texas, John Teixeira and Kyle Teixeira of

Teixeira Property Management bring you all of the knowledge and experience they can

provide for the confidence to achieve your investment goals, or how and why to create

them. Now, while John and Kyle have a ton to share, they will also be bringing you

interviews with some of their clients, industry partners, experienced investors, and

much more every week!

John and Kyle look forward to sharing the knowledge you need about arguably the

greatest investment vehicle that is available to the masses — Real Estate. Knowledge

is power, and John and Kyle intend to give you as much power as possible. It's not

always about the HOW, but also the WHY, and they will be digging into it right here

every week!