Buy and hold repairs

[Michael Kistner]

Hey BP Forum!

When you purchase a buy and hold property do you believe in making only necessary repairs or do you go in and gut the place even if it doesn't help your ROI?

     I’ve been going back and forth on this lately and am leaning towards gutting the rentals and updating them. But I’d like to get more opinions and hear others strategies. 

 Thanks,

   Mike

[Karl Hadley]

If you were to do a gut on the rental, how much more in rent to you expect to collect?

I typically do only minor updates (fresh paint, new fixtures/carpet if needed, & outlets (to freshen the place up)) however on my last one I did a much more extensive update (flooring, doors, bathroom & kitchen) while expensive, I think I’ll make it back over the next 5 years because I was able to increase rent on the unit by over 50%....

I’m sure there are folks with more experience than me, but just wanted to share how I approached the decision.