Kitchen appliances can be expensive. Homeownership in general can be expensive. So why buy costly appliances if you can find a good deal on used appliances for sale? Whether the appliances are for your personal residence or rental property a good used set can help you keep a little extra cash in your pocket.
Let’s talk about rental properties for a minute. The name of the game to owning a rental is to see a return on your investment. That’s not always easy with all of the expenses. First there are expenses for buying the house like your down payment and closing costs. Then once you finally own the property you may have to renovate. And finally to make your property marketable you decide to fill it with appliances. All of these costs add up and all you want to do is list your property to start to generate some income.
New to investing in property? Check out our complete list of investment property expenses so you know what to expect before buying your first property.
To keep your costs low there are a few options for purchasing used appliances. With anything there are pro’s and con’s to each option that I’ll cover in detail.
If you are looking for a used appliance to put into a rental, you should know your local market. Renters expect different styles and availability of appliances depending where you are located. If you’re in a higher end market you may need to purchase more appliances and stainless steel to make your property desirable. There are other neighborhoods where you may be able to get by with standard white appliances and tenants may not expect a washer and dryer. This will help you determine your appliance budget and what may be necessary to be competitive when listing your property.
List of options for where to find used appliances for sale:
- Lowe’s Returned Aisle
- Scratch and Dent Stores
- Online Marketplaces (Facebook Marketplace, Craig’s List etc.)
- Auctions
Over the years, we have bought from all of these used appliance options. There are pro’s and con’s to each depending on your goals and circumstances.
The Return Aisle at Lowe’s
The return aisle at Lowe’s (or other stores) is one of the best places to purchase used appliances for sale. The return aisle has appliances with minor flaws or defects but otherwise work perfectly. If you are looking to cut down on expenses, this is a great option.
The benefit to buying returned appliances is that you can get items at a steep discount. These items also typically come with a limited warranty.
The downside is that buying appliances like this can feel a bit like a treasure hunt. You never know what will be available. This is only a good option if you have a lot of time to search for deals. If you need something immediately or if a renter has a broken appliance, then this is not the best option. Often times these items also have minor scratches or other flaws.
Scratch and Dent Stores
Scratch and dent stores or used appliance stores are a great option for purchasing appliances. These stores typically carry used and refurbished appliances for sale.
The benefits of shopping at a scratch and dent store is that you can get appliances for a fraction of the cost of new. The appliances often come with a limited warranty also.
The downside is that a limited warranty can also be viewed as a detriment. Also depending on the store the selection can be limited. Rental property appliances are considered used after the first tenant vacates so I prefer used appliances for the cost savings.
Intrigued by the idea of scratch and dent appliances? Check out this article for more info and to know what to look for when buying these appliances – Buying Guide for Scratch and Dent Appliances
Online Marketplace
Another option for purchasing appliances are online marketplaces. Facebook marketplace is a great example of where you can find local appliances for sale by individuals.
A benefit to an online marketplace is you can often snag great deals.
A downside is that you have to work with the seller to meet on their terms and schedule to pick up the appliance. An additional downside is that there are no guarantees and you’re taking a strangers word that the unit is still in working condition. It can be a bit of a gamble.
Auctions
In my experience auctions are the most risky of options for purchasing appliances. At auctions most items go ‘as is’ and there isn’t always testing of the items to ensure that they’re in working order. I would proceed with caution. There are rare instance where you can buy a unit for so cheap that it’s worth the gamble. One example is a refrigerator we purchased for $10 at an estate sale. For $10 bucks we thought we couldn’t go too wrong.
New appliances
Beyond buying used, the most obvious option might be to go out and buy new appliances from a home improvement store. The benefits to this are you have a good selection and will have a warranty on your purchase. Many stores will also deliver your purchase. The biggest con is this is the most expensive option. If you have a healthy budget and are particular on appliances this would be the best option to pursue.
Other Helpful Tips …
If you have extra space, I would recommend storing a spare of each appliance for when a breakdown happens. Unfortunately this is inevitable. It’s Murphy’s Law right? Whatever can go wrong, will go wrong… Anyways, this is when you can take some time to peruse the return aisle at Lowe’s for great deals or keep an eye on Facebook marketplace.
We’ve used all of these options at some point for our rental properties. It really just depends on how much time you have to get a new appliance in and what your budget is. We’ve bought brand new appliances because it was a circumstance where it broke down on the tenant and it was a hands off approach to have it bought and delivered without taking any of our time. We’ve also purchased properties, renovated and had time to look for deals at scratch and dent stores, online marketplaces or returned items. We always keep an eye out for good deals as we have a little bit of storage room for an extra refrigerator or stove. This makes things more convenient and cost-effective for us on short notice.
Appliance Life Expectancy Inventory Spreadsheet
To help you budget for appliances we have created an Appliance Life Expectancy Inventory Spreadsheet. The inventory spreadsheet is the perfect place to track major appliances, when they were last updated, and most importantly when you can expect to replace them again.
The inventory includes over 20 common appliances (refrigerator, water heater, air conditioner etc.) their average life expectancy, purchase date, cost, and replacement date.
You can grab a copy of the Appliance Life Expectancy Inventory Spreadsheet by subscribing below. Not only will you receive the printable appliance spreadsheet but you’ll have unlimited access to our entire Investment Property Resource Library. Subscribe for a limited time for just $2.99 per month to this growing digital collection of printable templates and tools for buying and managing investment properties.
It’s the perfect low-cost toolkit for anyone looking for a little more guidance to kick-start their passive income potential. No obligation – opt-out of the Investment Property Library at any time.
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Some of the additional printable resources in the Investment Property Resource Library include:
- Sample Inspection and Inventory Record
- Sample Rental Applications
- Rental Business Financial Spreadsheet – Excel Spreadsheet
- Rental Property Cash Flow Worksheet
- Newsletter Updates
New resources are added frequently so check back often!
