Spend $15K on renovations to get a $305/mo. rent bump?
Would you spend $15K on renovations to get a $305/mo. increase in rent?
Let's assume that the renovations will cost $15K exactly and the rent increase is accurate.
I have two condos on Oahu, Hawaii that have been producing roughly $1600 rents for many years. By adding tile floors, new cabinets and counters, new fixtures, new applicances, I think I should be able to get $1900 for rents no problem.
I have not done a renovation of this scale, so if anyone can recommend contractors in Honolulu, Millani, Kailua, or Oahu in general that would do this kind of work, please do here or PM me.
Also, I have no idea if I am able to write most of this off as repairs, or will I have to amortize the cost (not favorable)?
I have recently thought I should sell my small rentals and just focus on 100% passive investing. Then I realized, it's probably not a good idea to sell cash flowing and appreciating assets in HI that also deliver great tax incentives.
Would love to hear your thoughts on anything I have outlined above. Thanks for reading, sharing, and have a lovely weekend!