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.
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.
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.
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?
Thanks everyone. I have more to work with now.
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