Laveen, AZ · Member since 2016 · 584 posts · 528 votes
I'm debating whether to go stainless steel appliances with laminate counters, or get the granite counters and do white appliances (white would go better with color scheme of paint job than black)
The property is a two story, 2/1.5 condo 980 sq ft. about 42 sq ft of counter top space. 4pc appliances. I put nicer tile floor throughout (except bedrooms and stairs)
I want to do better than white appliances with laminate counters to stand out among neighboring properties
I haven't deemed it sensible to spend the budget on this property to do both granite and SS.
The zip code of this property is about a square mile and the properties vary widely. Condo prices range from 60k to 400k, and rents for comparable sizes from 800 to 1100/mo. Some properties have laminate with basic appliances, some have both granite and SS, some have one or the other. This neighborhood is interesting because on one side of the street you can have what people here call a "C" or "D" block directly across the street from an "A" block. Which would you choose and why? Thanks for your input
Denver, CO · Member since 2016 · 82 posts · 46 votes
9y
If you wanted to upgrade one of the two, I would imagine the upgrade from black or white appliances to stainless would cost less than an upgrade on the countertops.
Denver, CO · Member since 2016 · 82 posts · 46 votes
9y
YMMV, but in the markets that I have worked, we have not seen it worthwhile to upgrade to either granite or stainless steel for units that rent this low. My personal recommendation to clients is to upgrade to SS appliances if the unit rents for $1200+. Granite might be more like $1500+.
That being said, on a side note, I've never really seen a kitchen with white appliances that I liked. Not sure what color scheme you have going on.
At this price point, in the markets I have worked, I would go with black appliances and laminate counters every time.
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
9y
@Travis Hughes Thank you. I don't like white appliances either, think they're ugly and generic but I've been focusing on tenant perspective rather than my own. The challenge with black vs SS is that there is a price difference, but not a whole lot that I've seen. The kitchen is kind of small, so I'm trying to compensate. But I agree with you that it makes sense to spend less if it doesn't garner high enough rent or better tenants.
In my area, 1200+/mo either rents you a nice house or a condo in a chic complex and/or competitive neighborhood. Still learning, this is my 2nd property
Denver, CO · Member since 2016 · 82 posts · 46 votes
9y
If you wanted to upgrade one of the two, I would imagine the upgrade from black or white appliances to stainless would cost less than an upgrade on the countertops.
I would make my decision based only on the class of the property and whether the upgrades would garner a higher rent or simply make the unit more attractive to renters. If it is a B class property the upgrades you mention will not increase the rent therefor I would not waste the money on either. If it is a A class property then both items may be warranted.
Investing money is only about numbers not personal opinions. If upgrades do not make money investors do not waste their money on them. This is not a personal home and decisions should never be made from the perspective of a home owner.
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
9y
@Thomas S. Thank you. As I mentioned in a previous comment this has nothing to do with my personal preference. It's all about the quality of tenant, what they'll spend, being competitive, and getting the best return for the investment. The challenge I'm having is the fact A, B, and C properties are within blocks of my property and it's pretty much in the middle of it all. Second, there is a mix of kitchen features among the comparable properties in the same price range. Only the "A" properties have both consistently. From your and Travis' feedback, it sounds more like a lean toward no upgrade for either, which makes sense.
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Rodney Sums - If you want an inexpensive alternative, look around on Craiglist for used SS. We've had great luck with that. I'd say well over 50% of the "new" appliances in our flips are used but well maintained.
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
9y
@Elizabeth Wilson funny thing is I started there first because it makes the most sense and I buy even personal high dollar items used, like cars for example. I think every investor in Maricopa County is on craigslist because everything I saw is about the same price new or in a condition not worthy of paying 40 50 bucks less haha but I will certainly keep looking there and other second-hand sites
Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
9y
@Rodney Sums-- IMO it's a no brainier-- find the cheapest stainless steel appliances you can. We prefer them, just because #1 kitchen is what sells the house, so if we have to put an extra $200 - $400 vs. white appliances, pays for itself tenfold as people see it and immediately think high end and want to rent from you! Lower vacancy = higher returns.
Granite also requires upkeep, which I doubt most know about.
Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
9y
Your goal should be to tenant proof your rentals as much as possible and work on getting the highest rent possible. The extra $1,000 you might spend on granite and stainless appliances can be made back in several ways:
1) Depreciation. You can depreciate those assets faster than the building
2) Higher rent. Charge $25 more a month if you hold the rental for 4 years or more you've made your money back
3) Plan for the exit. I don't buy rentals to hold for 20 years. I buy rentals to hold for 5-7 years with the plan on flipping them when i am done. All of this gets factored into my initial offer price.
Homeowner · Corpus Christi, TX · Member since 2008 · 199 posts · 16 votes
9y
I was going through the same problem. Shopped around all used places like Craigslist, OfferUp, Let it Go, etc... for used SS appliances and finally found some. Got the Fridge, Electric Range and Dishwasher for $400. All they need is a good cleaning. Keep shopping for used and something will come up.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
9y
Really depends on your market and ROI.
Refrigerators can be easily changed out. Counter tops not as easily.
Life expectancy of a counter top is more than that of a refrigerator.
Some tenants prefer to use their own refrigerator. Some landlords require tenants to use their own refrigerator and don't provide one.
Stainless steel appliances and granite counter tops both require special care and cleaning to keep them looking good and many tenants are not into doing that.
We have white appliances in all of our 17 units except for one, where we put in SS. The tenant in that house complained about how hard it was to keep the SS looking nice. She bought the special cleaner and everything. She begged us to change it out to white.
From our experience, if the unit is HGTV modern and the tenant is young, they will expect SS and not be happy with anything that they consider "dated". If the tenant is more mature, or a senior, and like older properties, they are less likely to be stuck on SS.
About counter tops.... there are many more options for counter tops than just laminate or granite. Granite is very heavy, so take that into consideration. What is the quality of the cabinets? The color and grain of the granite matters too. Some look terrific and some not so much. Also consider the back splash.
Since your unit is in an area with a mix of A, B, C properties and the tenant pool for that area is diverse, then decide what your niche is going to be and cater to it. Make sure your upgrades garner for you the income you seek.