I am a beginner who just "rehabbed" a house.  I followed the model you see on HGTv where an investor comes in and updates things.  I put in a new kitchen, new bathrooms, updated paint and floor coverings.  We finished the basement, updated the curb appeal, and took the house from 1972, to what looks like a new home.  

The house went under contract within a week, but failed to appraise.  In fact, the appraiser compared it to basic, unimproved houses.  Under finish quality, she just listed C3 or average for every house.  

My realtor says this is a mistake many investors make.  She says that updates are largely a waste since they don't add value to the house.  They make it sell faster, but you can't get more money.  I don't know if this is something unique to west Michigan or Kalamazoo.  But I see houses selling with green carpet, paneling, 1970s painted cabinets, and they fetch the same price as updated homes.  They may sit on the market 90 days longer.  But I think in this area, updates don't count for much.  Not sure if the buyer pool is uneducated about them, doesn't care about them, underestimates the value they add or what they cost or what.  

Basically, I am being told that every penny I spent on the basement was a waste, that I could have just freshened up the place with paint, clean low grade finishes, and it would have appraised for the same and even sold for the same.  As I look at the appraisal and recent sales data, I tend to agree.   Is this the experience of other West Michigan investors?  Fix and flip, yes because you make the property eligible for finance or fix some glaring cosmetics.  But rehab updating, is it worth it?