How much does Vinyl siding improve ARV?

3 Replies

Hello!

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!

-Troy

New Investor

@Troy M.

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.

402-965-1853

@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!

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