Should I renovate update my bathroom of 70s or should I buy a real estate propert?

Question

I bought a co op apartment in nyc and I renovated the apartment except the bathroom and bathroom need the update as it is from 70s or 80s and it will cost me around $10k and I am also thinking to buy a property and put that $10k in down payment. so I’m little confused should I invest and buy a property or do the bathroom renovation and update ? If I do the bathroom renovation in next few years I think it’ll cost more than $10k and also the property so I need little help from you guys. Thank you

Theresa Harris · Answer

Why not start looking at properties and see if you need that $10K to get a rental you want?  If you can get a good rental without it, use it for the renos.

Tenzing Palmo · Answer

Thank you so much for the thought and your time. I am actually thinking to invest out of state as I already have one property out of state not in nyc. So I can add the $10k as I have more budget to put for down payment. So I was wondering if I put the $10k in updating bathroom or add up that $10k and buy property. Appreciated for your time and the message.

Mohammed Rahman · Answer

both options have pros, but it really depends on your goals right now.

If you put the $10k toward buying a property, you’re building your investment portfolio, which could appreciate over time and possibly bring in rental income or long-term gains. But keep in mind, $10k in NYC real estate doesn’t go super far on its own — you’d likely need more stacked up for closing costs, reserves, and all that.

On the flip side, renovating the bathroom improves the value and livability of your current co-op. A dated bathroom can drag down resale value or even affect your enjoyment living there. If you wait a few years, you’re right — renovation costs will probably be higher (materials, labor, permits, etc.). Plus, if you ever sell, a fresh bathroom could help you get a better price or stand out in a competitive market.

So, the question is: are you in a rush to expand your investments, or do you want to protect and boost the value of what you already own? If you’ve only got the $10k right now, you might get more immediate return by updating the bathroom. But if you’re stacking cash and ready to seriously jump into the next property soon, maybe hold it for the down payment.

Lauren Robins · Answer

You're at a decision point that balances long-term value, immediate comfort, and investment potential. Renovating the bathroom now for $10K may seem like a big expense, but it could enhance your quality of life, modernize the space, and potentially increase the resale or appraisal value of your co-op, especially in a competitive NYC market where updated interiors can make a big difference. On the other hand, using that $10K as a down payment on a new investment property could help you build wealth and generate rental income, which may have a stronger long-term financial upside—especially if you're looking to grow a real estate portfolio. That said, consider whether you’re financially ready for the responsibilities of owning another property, including closing costs, reserves, and potential vacancy or repairs. If you're confident you can secure a good deal and hold the investment, that could take priority. But if you’re staying in the co-op for the foreseeable future and would benefit from the update now, renovating may make more sense—especially since construction costs will likely rise. You might also explore financing options that allow you to do both, such as a HELOC on your co-op if allowed, or creative lending solutions for the new property. Ultimately, your choice depends on your personal timeline, financial readiness for another property, and how much the outdated bathroom is affecting your daily living or the unit’s marketability.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Abel Curiel · Answer

Hello Tenzing,

This comes down to your personal preference and how much the $10K additional investment will contribute to cashflow.

If you are buying in New York, putting 100K down on a property vs. putting 110K down (for example) will not have a significant impact on monthly cashflow or overall ROI.

That said, if the bathroom functions just fine and you can live with it for another year or 2, look into your investment options and how a prospective deal will change with an additional $10K down OR $10K to buy down your interest rate.

All the best!

Abel