Rule of thumb for how much to spend on a kitchen / bath?

Question

I'm 2 months into my first investment property and am looking for guidance on what to do for the kitchen and bath. In particular I'm wondering how much to spend on kitchen and bath upgrades.

Some details on my property:

I bought a duplex in New Haven, CT in early June for $420,000 and it needs a lot of work (somewhere between $60k - $100k). There is a 3 bed 1 bath unit on top, a 2 bed 1 bath unit on the ground floor, and an unfinished basement.

It is an older building, and while it has pretty good bones, it is VERY dated and has some significant deferred maintenance issues. Most of the work I have no problem figuring out what to do, but I've been struggling to decide how much to spend for the kitchen and bathroom upgrade. The ground floor ABSOLUTELY needs a new kitchen, and the upstairs unit kitchen upgrade it is somewhat optional. If I were to fully remodel the upstairs kitchen there would also be the option of putting in a half bath.

The property is on the edge of a B class neighborhood, with a C / D class neighborhood nearby, so I will never get the best tenants, but I still want to target the highest quality of tenant for the location. I believe the 3 bed should rent for at least $2,300 and the 2 bed at least $1,900 (I might be able to get more, but prefer to be conservative on my projections).

So... any suggestions on how I should budget for the kitchen? I'd also love suggestions on the grade of the cabinets, countertops / appliances. I know laminate is the cheapest, but I'm concerned about the durability, I've never seen laminate that wasn't starting to get damaged after a few years)

Thanks for any help!

Alexander Szikla · Answer

Totally depends on level of finish. A bathroom with a new vanity and paint job can be $1,000 to $2,000.

Retiling adds labor and material costs. A new toilet and/or shower/tub will require a plumber. Etc.

Sergey A. Petrov · Answer

Look at homes in your area. You don’t want to be the most expensive house on the block. Being the cheapest (while well maintained attractive and neutral) relative to your immediate area is usually best. Makes no sense to spend $100k on a modern kitchen if the neighborhood doesn’t support that level of quality/ luxury

William Sing · Answer

Hey there!

I'd take a look at the level of renovation you'll need from other rentals around you. Using more neutral colors like grey and beige seems to be all the rage lately.

How much you put into the renovations will primarily be based on what you want to outsource and the grade of materials you are looking for. I'd look at Ikea for cabinets. They are pretty good quality and lay on rails so they can be swapped out. If you are not looking at laminate (which has gotten a lot better) then look into engineered stone. Quartz and Granit are good but doesn't always have the best durability. I'd just get appliances from good brands from whirlpool etc.

Hope that helps!

Rule of thumb for how much to spend on a kitchen / bath?

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