Have good 50's style bathroom and Kitchen in duplex buy and hold

10 Replies

I am looking at a 1957 larger duplex (1300sf/side) that has fairly decent bathroom décor in both units and one kitchen with older metal cabinets that are good but dated.  I am looking at a $900+ rental for a 3br 1.5 bath.  If I can keep some of these elements the update would be much less.  Is it worth the newer look?  Looking at 115K purchase with $20k updating.  Value when done $160k+/.

Market area:  Omaha, NE. Average well kept working class neighborhood.

Thanks, Mark

Will the 20k upgrade enable you to get higher rent(>$900)? This will need to be considered as part of the decision. ROI on the upgrade needs to be analyzed.

i would keep the old ones, maybe just paint them and put nicer handles.

I believe the upgrade may get me to the higher rent of $900 up from the previous rent of $600.  Previously owner (102 year old) lived in one side and rented the other for $600.  I do not think she was actively trying to get the most out of her rental instead it was helping pay her expenses.  Other similar properties in the neighborhood rent for $900 but I have not seen the blue, green or pink bathrooms in them.  If I could leave them or paint as was suggested I could save a good portion of the upgrade costs.  I had read somewhere on BP that the steel kitchens were a definite downgrade on a rental. 

Is anybody in the immediate neighborhood getting the higher rent you are looking for ? Why not test market before committing to a large expense ?

Thanks Sam I looked at photos again and you may be right.  I may be able to salvage what I have.  Go with more selective elements to upgrade and try what I have.  I suppose I could always come back and paint over existing and try again.

Is there any feedback as to keeping the 50's styling as a plus?  One bathroom is burg/pink the other is green/black.  Matching small tile flooring.  I really like the style, but that is also the era I grew up in.  Are there retro finishes that I could add to the rest of the house that would tie it in?

update, update, update

I would be turned off if I was a renter to see that old cabinets.  That would shout out slumlord to me.

Just do the updates with the white cabinets from Lowes.  Nice and clean look.  I always go with the white so it would go with almost anything.  It will be easier to rent with a nice new look.

Mark,

Looks like you have a pretty good deal if you can keep the rehab at the 20K you talked about. Guestimating taxes and insurance, I calculated that your NOI would be around $14,634 and your cap rate just under 11% with PM factored in.

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Mark, nice to know other BP members are in the area. that sounds like pretty good rent you'd be getting there, what part of Omaha might I ask?

lower midtown. 

Thanks everyone. I have more to work with now.