Does Vinyl siding improve my ARV? Duh! I know the answer is yes but is it worth it?
I am currently evaluating a 3-unit building worth approx 80-90k with a pre-rehab cap rate of 30% with an older shingle siding. The color is weak and the exterior doesn't look terrible but it doesn't look great(see below picture). I am planning on spending between 20-35k on the interior to update the inside.
With cost estimates coming in between $8-12K, has anyone seen significant upside value in installing the new siding for ARV?
Thanks for the help!
It totally depends on the area. I recently put siding on a house that I am rehabbing here in the Omaha area. The old siding looked absolutely awful with pieces missing and other pieces that were rotted. I also replaced the roof and the gutters.
The house looks so much nicer now. The house is in a B+ area so I am estimating that it added $25,000 to the ARV.
Siding is one of the highest ROI projects you can do to improve a property. On top of the increased value, you will attract way more buyers and better tenants that way. You won't regret it.
@Troy M. what is the rest of the neighborhood like? Nothing impacts your ARV more than comps. Going vinyl may be overkill and not get you value, or it may not. See what is around and make sure you'll be able to appraise at whatever you think the upgrade is worth!
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
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing