Updated almost 7 years ago on . Most recent reply
Enhancing the value of current home for refinance
Hi Everyone! I'm currently living in a single family home I bought 3yrs ago. My husband and I want this home to become our first rental property. We want to work on doing some projects to increase the value and then refinance the home and hold (as a rental). What projects are the most profitable to do or most wise to do before refinancing to increase value but keeping in mind it'll be a rental property.
Thanks so much in advance!
Most Popular Reply
#2 General Landlording & Rental Properties Contributor
Don't waste your money trying to increase value to refinance for a rental. Unless the place is falling apart you will spend more that you will ever get back.
Additionally most personal SFHs will not produce significant cash flow if any so you need to seriously evaluate the numbers before you decide to rent. Keep in mind your expenses will be 50% of your rental income on average.
Rent X .5 (expenses) - debt repayment = cash flow.