Value Add or asking for trouble?

Value Add or asking for trouble?

Investor · Ogdensburg, WI · Member since 2016 · 273 posts · 351 votes

Fellow BP peeps. I need your help solving a friendly husband/wife REI debate..

So I have a handful of multifamily properties with attached garages.

I have been updating the garages with fresh paint, epoxy floors, new modern fixtures and vinyl base. Thus far it has been a positive response.

I told my wife I was thinking of finishing the garages off ,like my own finished "mancave" garage by adding a ceiling fan,ceiling mount heater,an additional outlets... She says "it is a terrible Idea." She thinks they will be up all night drinking beer watching sports... (I have no idea where she gets that from lol)

I feel it would add an additional feature no one else offers, resulting in higher rents and less turnover and an occasionally annoyed wife/girlfriend ;)

How would you describe this space???  Add it to the sq ft area? Call it rec area? Or just finished attached garage?  

Here is a pic off one off the buildings with the "level 1 finish"

Let me know your thoughts or if you have tried this and the response you got!

Thanks, Peter

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John CasmonPro Member
Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
9y

Look to see if any other rental properties have finished garages and if they pull a premium in rent. Worst case, you can run the experiment on your own and finish one garage and see if it garners a premium. 

However, you may be better served adding a unique feature to the kitchen or bath that really makes it standout as opposed to the garage updates.  

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Peter B. I think it all depends on your market and market rents in the area. Typically people love their garages, and you've done a great job, always a selling point. 

    If anything, the shelving that hangs down or storage up above if you have room for a ladder 

  • Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    I think that you will be spending money in the wrong area. Kitchens and baths will give the best return. 

  • Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    Listen to your wife. Even if you're right (which you're not in this case IMO) then you're still wrong ...

  • Investor · Ogdensburg, WI · Member since 2016 · 273 posts · 351 votes
    9y

    @Kim Meredith Hampton I have contemplated the drop down stairs for storage. They would actually work quite well with the above property and the others. My only concern is tenants and ladders. Thanks for your input!

    @Todd Dexheimer  Agreed.. Although the kitchen and bath in the subjects are modern and very similar to new construction.  Thanks for your input!

    @David Faulkner So true on the wife part, and I think the majority has spoken and I will keep it simple. Thanks for replying!

    Peter

  • Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    @Peter B. the other thing is the more area you finish, the more that can get ruined/outdated and need repair. A man cave garage may be cool, but you're going for maximum return on investment. 

  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    9y

    Look to see if any other rental properties have finished garages and if they pull a premium in rent. Worst case, you can run the experiment on your own and finish one garage and see if it garners a premium. 

    However, you may be better served adding a unique feature to the kitchen or bath that really makes it standout as opposed to the garage updates.  

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