Renovate or save money

[Michael Orlando]

Hello BP community. I purchased my first duplex (house hack cash flowing about 400 a month) about 2 years ago with 20% down conventional. I renovated the kitchen and bathroom of one of the units.  The unit I didn’t touch wasn’t in as bad of condition.  I would say the unit is slightly below average for the area.  I would love to buy another this year or next and think refinancing is the best option for me.

 I have about 20k in total savings and think should I put about 8k in renovating the other unit to try and increase the value/ rent for when I do a refi?  or should I just save my money and refi without putting more money into it.  What would you do if you were in my position.  Thank you for your time. 

[Theresa Harris]

If you are planning on buying another place in a year, will you have the down payment you want if you do the renos?  For the renos, is the place vacant now (or will it be soon)?  How much value with the reno add?

As you are house hacking-I'd move into the side that needs the updating and do it over time while you are living there.