renovating basements for added value

3 Replies

Hi, I own some older homes in the midwest that are rentals and I would like to improve their basements. Is this a good idea? Has anyone had experience with that type of improvement and how was the ROI?

Thanks appreciate your responses.

Holly

Often times this comes down to if you put in an egress window or 2nd access or not.  If you don't, I find the returns are not spectacular.  If you put in a 2nd access you can count the SQFT along with the upper levels and really get the bang for your buck.  

@Holly Peterson

The hardest part is really keeping the water and moisture out of the basements. A sump pump would almost be mandatory, on top of dry locking and proper grading.

This works great in college towns where renting by the bedroom is linear. Sometimes the additional $10-15k of work for the basement isn’t worth it…

It’s always case by case

yea, basements are historically poor returns except as @Scott M. mentions. If it still feels like a basement when you are done, no matter how nice it is you don't get much. A smallish starter house where you can add a family room playroom can be a real advantage in a market where a young couple needs the space...make sure you don't skimp on vapor barriers