Should I do this renovation?

[Brandon Jones]

Hello,

My wife and I have 2 condos in a smaller town in NC. We borrowed money last year to buy them under market value with cash & renovate them. We ended up renovating one unit and increased the overall value pretty significantly. The other condo has a long-term renter so we didn't do any renovations at the time. We have since then done a term and rate refinance and taken on new loans at the new appraised value for both properties.

We plan to do some renovations to make the 2nd condo more rentable, but we are not sure if re-doing the bathroom will be worth it. This unit is currently rented out for $1,200 & the renovated unit is rented for $1,400. Is it worth it to spend $5k to renovate the bathroom to the same level as our previous condo?

We will definitely be re-doing the kitchenette since it currently has a mini-fridge only & we want to add a range & medium sized fridge.

Renovated Condo

[Chris Seveney]

if it gets you $200/mo x 12 = 2400 a year so you recoup your money back in 2 years. Also bathroom remodels are one of the best ways to increase value in a home - so my recommendation would be to do the bathroom if you can afford it.