Registered: 1337877524 Posts: 8
Reply with quote #1
We have a rental property about 16 hours away from us.
We've had it about 4 years now with the same tenant. Lucky us and they are great tenants. It's been a good property and we make about $1k a month- although our property taxes are REALLY high (about 3% of the properties value). It has come to our attention that our deck is rotting. It is quite a large deck and we have received quotes to repair it (frame is still good) for around $6k-8k. This is alnost a whole years profit! Initially we thought the tenants were going to move out and thought we could tackle on the project ourselves- husband is not necessarily "handy" but he would probably rise to the occasion. So now we are faced with three decisions: 1) sell the house and buy one in our city with lower property taxes 2) try to DIY 3) just pay for it to be done Wlelcome ALL advice/feedback as we are new landlords!!!
Registered: 1424031597 Posts: 128
Reply with quote #2
Look at how much you are paying for labor and decide if it is worth it to have your husband DIY. Keep in mind, materials cost the same either way. You are only saving the labor.
You are building up equity in your rental. Keep this in mind. Some years will cost you money and you may not clear a profit on the rents. This should not discourage you. It is part of the game. Sometimes you have a major expense. That is part of owning any property. Your new deck is an expense that can be deducted from your income taxes over a period of years. You will depreciate the cost, you cannot take it all in 1 year. Consult a tax professional. The choice to sell and buy another property requires a lot of details you have not given. Without knowing your market and what options you might have, I would never answer that question. Good luck.