My friend just spent $10,000 installing a tankless water heater. It’s a good improvement, but the price was about 4-5x on the high side. Sometimes people make investments in a property they really love, the way one might make an expensive gift to our child. This is natural, and can be beneficial. Yet, as much as we love our property, and precisely because we love our property, we should make sure we get the right bang for our buck. In my area, a new tankless water heater runs around $1300, and replacing an existing one, hiring a licensed master plumber might be around $800. $10,000 was an expensive way of saying “I love this property”. This person, well meaningly, blew his entire wad of bills on one thing, when that $10,000 could have netted him numerous high value improvements.
Lots of trainers will say to be dispassionate about your properties, they are an asset, not something to get emotionally involved with. I disagree. My passion for my properties is my strength, and it attracts good tenants who likewise love older, quaint, unique homes. Passion shows, and it can net a premium in rent, or dividends in terms of long term tenants who are problem free. Just use your passion wisely. Get the highest return on being passionate on your investments.
Often a simple google search will get you an idea of reasonable prices for various repairs and upgrades. Likewise, my rule of thumb has long been to get 5 bids instead of 3. The first 3 bids often seem similar, and I still come across as a novice buyer. By the 4th and 5th bid visit, I know the lingo, what questions to ask, and seem to get dramatically better quotes as a result. Those two extra calls are well worth your while.