What are some go to renovation to increase property value?

Question

Hi everyone, I'm brand new to this however have done a TON of reading / watching videos and am trying to get as much information as I can before I start to invest.

I have learned a lot so far however 1 thing I need to get more information on is renovating.

I know this is going to be a very broad question, but I am trying to see if there is anyone out there who uses the BRRRR method and have a go to renovation that they do on every property that they know will typically increase the value of the home.

Thanks for any advise.

Andrew Syrios · Answer

It differs a bit property to property, but I would point to my article on value-add rehabs for houses and small multi's: https://www.biggerpockets.com/blog/13-ways-increase-rent-add-rental-property

John Warren · Answer

@Bryan Hurley renovating is a huge part of pretty much every investor's strategy, and it is the most challenging thing to learn in my opinion. I feel that I am constantly learning and improving in my knowledge of construction. As you look to invest, try to focus on opportunities that need LIGHT renovation. Think cleaning, paint, maybe flooring. If you can avoid doing a big renovation project for your first one you will be much better served.

With that being said, the main issue most newbies run into with the BRRRR method is that it does work.... but has a lot of risk. I think it makes more sense to focus on finding undervalued deals with low risk as opposed to stressing about getting all your money back.

Jonathan Greene · Answer

Your renovations will differ depending on single or multi-family and the rents you are trying to get, as well as the surrounding comparable sales and rents. You never want to do too much to a rental property because it is unlikely you will get it back and the wear and tear could be a lot. If you are looking to BRRRR a multi and live in one and rent the other, I recommend smart, high-value adds for the tenant and for privacy. If there is backyard, I always put a fence down the middle so you and your tenant have private space from each other even if you can see over. I also put in two W/D whenever possible to reduce the shared laundry. I clearly mark parking spaces as well. This also helps when you move out and complete your BRRRR. Tenants who have clear separation and privacy will interact and argue less.

If you are talking about single family reno, it's different, but for what you are looking for you will be talking about lipstick reno. Nice-looking, but cheap things to increase the value and aesthetics of a rental unit.

Kevin Sobilo · Answer

@Bryan Hurley, I think one of the hardest things to measure is how much value will be added by doing improvements on a property that is already in good condition. With residential real estate an appraiser will be focused on comparable sales and using that to value the property when they don't even have complete and detailed information about those comparable sales and their condition.

For BRRRR type deals, I would focus on distressed properties. Its easier to see how taking an unlivable house with no working systems to be a B class property will increase the value and have a pretty good idea where that value will be.

What are some go to renovation to increase property value?

What are some go to renovation to increase property value?

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