Exit strategy for rental house

1 Reply

I was wondering, if you plan to hold your rental for 7 years and then sell, for example, near the end of that period do you update it to the retail buyer level, putting in hardwood floors, etc., or make it "investor ready" by replacing worn out low end cabinets with new low end cabinets, old vinyl tile with new vinyl tile, for example?

If I was determined to sell at that point, I'd evaluate which made more money. At that point you have to compare selling it as-is and investing nothing to your two alternatives. I'd only do updating if it returned more than the cost of the renovations.