Gain the most ROI in upgrades

[Nathan Fraser]

Good morning BiggerPockets community

I’m looking to purchase my first home but my end goal long term is to have rental properties. I realize that with only a little cash on hand to work with that I may have to buy a single family house, upgrade it and gain some equity just to get myself into the market.

If that's the best strategy for me (open to suggestions) what are the best types of upgrades I can do for the most ROI? From my research so far I gather not all upgrades are considered equal.

Thank you all for your input.

[Thomas S.]

If your end goal is to invest in rental properties do not buy a SFH. They generally are a lower quality return on investment based on income. Buy a multi, 3-4 units, best bang for your money if you are serious about investing.

There is some return on renovating a SFH but none will return 100% cost on resale. It is far easier to get a ROI on multi unit renovations through higher rents.