What Type of renovations do you guys do when purchasing SFH LTR?
I'm looking to build out a spreadsheet when i can get a preliminary renovation cost that i could use in my analysis when looking at single family long-term rentals. What types of renovations do you guys see yourself doing when first purchasing the property? I've got things like:
Paint, replacing carpets, installing LVP (will calculate those by SF), replacing cabinets, installing countertops, purchasing appliances (washer, dryer, fridge, etc.), hot water heater, roof
I'm sure there a lot of obvious things that I'm missing and would like to hear them all. My goal with this spreadsheet is to calculate an upfront cost after walking through the property. This would better help me run my numbers.
Thanks all
This is a case by case situation and really an open ended question. Every rental property starts out in ____ condition. If the countertops are nice, undamaged, and don't have 10 layers of paint replacing them is a WASTE OF CASH. Same goes for the cabinets, flooring, bathroom vanities, and tub. On the flip side if you don't have a kitchen or bath (most expensive rooms) I'd review your analysis and calculate a budget to remodel it effectively.
If you plan to buy and hold for 10+ years some of it will get damaged, destroyed, or worn out in that time. Unless comparable rentals in the neighborhood justify high end finishes usually it's a bad idea to install them. I really focus on breakable issues like sink drains, doors locks, HVAC maintenance/replacement, outlets, water heaters, and the roof. Fixing what breaks BEFORE it breaks is peace of mind. It's not always possible but that's what reserves are for.
Your opinion of LVP is spot on. In my opinion carpet sucks. It the cheapest flooring possible but you'll replace every 4-5 years. We clean units for unit turn overs and the investors I work with usually pull the carpets and replace with something more durable and trendy.
I'm sure there are a lot of spreadsheets and/or calculators to be found here on BP for evaluating and estimating repairs. As a general rule of thumb I repair/replace anything that has less than 5 years of life.
You seem to have a grip on the basic stuff. Here's what I also budget for:
BIG TICKET ITEMS:
Windows
Rough/Finish Carpentry
Plumbing/Electrical Upgrades
Foundation Repair
Concrete Repair (driveways and/or patios/decks)
Plumbing/Light Fixtures
SMALL TICKET ITEMS:
Window coverings
Lock changes
House cleaning
Quote from @Jaron Walling:
This is a case by case situation and really an open ended question. Every rental property starts out in ____ condition. If the countertops are nice, undamaged, and don't have 10 layers of paint replacing them is a WASTE OF CASH. Same goes for the cabinets, flooring, bathroom vanities, and tub. On the flip side if you don't have a kitchen or bath (most expensive rooms) I'd review your analysis and calculate a budget to remodel it effectively.
If you plan to buy and hold for 10+ years some of it will get damaged, destroyed, or worn out in that time. Unless comparable rentals in the neighborhood justify high end finishes usually it's a bad idea to install them. I really focus on breakable issues like sink drains, doors locks, HVAC maintenance/replacement, outlets, water heaters, and the roof. Fixing what breaks BEFORE it breaks is peace of mind. It's not always possible but that's what reserves are for.
Your opinion of LVP is spot on. In my opinion carpet sucks. It the cheapest flooring possible but you'll replace every 4-5 years. We clean units for unit turn overs and the investors I work with usually pull the carpets and replace with something more durable and trendy.
Yeah definitely agree that this will be on a case-to-case basis but i was asking so i could basically fill what's needed after the walkthrough. I.e. if i see i need to replace 500sqft of LVP, cabinets, etc, i'd plug it back into this spreadsheet (that has a database of all things replaceable) and get a number for that specific property.
Are bathrooms really that expensive? I've seen a few times where people have retiled, painted, replace vanity, all for under $1,000. Expensive is a relative term so that may be expensive, i'm just not sure haha! Thanks for the info too.
Quote from @Marty Boardman:
I'm sure there are a lot of spreadsheets and/or calculators to be found here on BP for evaluating and estimating repairs. As a general rule of thumb I repair/replace anything that has less than 5 years of life.
You seem to have a grip on the basic stuff. Here's what I also budget for:
BIG TICKET ITEMS:
Windows
Rough/Finish Carpentry
Plumbing/Electrical Upgrades
Foundation Repair
Concrete Repair (driveways and/or patios/decks)
Plumbing/Light Fixtures
SMALL TICKET ITEMS:
Window coverings
Lock changes
House cleaning
Thanks for that. If you find anything on BP or have something that already exists, please pass it on!
@Nader Hachem You can't remodel a small bathroom for less than $2-3K. It's not possible. If hired out it's easily $5-6K with materials for a RENTAL property. I remodeled two small bathrooms and spent about $2700-3k on each but I was buying open box deals on exhaust vents, lighting, facet, and one vanity from FB marketplace.
THat was before COVID pricing ruined the fun.