According to RemodelingMagazine,
1. Sunroom addition
ROI: 48.5 percent
Resale value: $36,704
2. Home office remodel
ROI: 48.7 percent
Resale value: $14,155
3. Upscale master suite addition
ROI: 53.7 percent
Resale value: $126,860
4. Upscale garage addition
ROI: 54.7 percent
Resale value: $46,791
5. Midrange bathroom addition
ROI: 57.8 percent
Resale value: $22,875
6. Upscale bathroom addition
ROI: 58.6 percent
Resale value: $44,750
7. New upscale composite deck
ROI: 58.9 percent
Resale value: $21,437
8. Upscale major kitchen remodel
ROI: 59 percent
Resale value: $66,747
9. Upscale bathroom remodel
ROI: 59.8 percent
Resale value: $32,385
10. Backup generator
ROI: 59.9 percent
Resale value: $7,263
All their costs seem way high to me!
Their costs are very high. But so are the amounts they claim are added to resale value.
I basically don't dispute their general contention here, that these are renovations that won't pay off. The key is the word 'upscale', which I read as 'custom'. And a custom renovation to your particular tastes is almost never going to pay off on resale.
Nice but boring, nice but boring....
Especially if you're focused on cash flow... you need to put yourself in the shoes of the tenant. How much more are you willing to pay in rent for these things? As a tenant I've always targeted location and price... condition is less of an issue as long as everything works as expected.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.