Hello BP community,
So we have just gone into escrow for our first primary residence, that we intend to turn into a rental (once we move out-of-state). I would appreciate an experienced persons input on estimating cost and timeline based on the associated pictures (conservative numbers to account for contingency), and person best suited for this job (GC, handyman, hands+youtube, etc).
Currently the unit is tenant occupied, but they have taken good care of the unit (had carpet on the flooring); walls were maintained well etc), so will need minimal rehab. Primarily trying to get some forced appreciation with a kitchen remodel (cabinets & appliances), and changing out the bathroom countertops/vanity. Aside from this we plan on installing ductless AC. I would consider doing as much work myself (to save on cost), and might consider painting (but don't think its necessary). I believe making these changes would make this a competitive rental unit for the future.
Any and all feedback is appreciated. Thanks everyone! :)
Hi Sheldon -- Congratulations on buying your first primary home and for having the foresight to start planning for it being a rental in the future. Are you planning on having work done prior to moving in yourself? If the main goal is to make improvements in order to get higher rent in the future then that really doesn't have to be done right away. You may find other things that you would want to upgrade while you are living there. If you are planning to have a property manager handle your rental then you might consider having a prospective property manager take a look to get their opinion on what would be most beneficial to the future rental.
You mentioned forced appreciation. Is that necessary for your immediate financing options or just something you want to do at some point? In that case it's a balance between doing work now that you will be able to enjoy while you live there vs having it all be new later on.
I can't give any input on the costs, etc not knowing your local market. If you are just looking for people to do the labor and you will provide materials (i.e. buying the cabinets, vanity, etc) then a decent handyman with some plumbing skills should be able to manage that. Best of luck!
If you want to (try to) Force Appreciation, it's smart to have a way to know the labor and material costs Locally before your option to back out of the contract expires.
Getting (guestamates) on the web from non-local people isn't going to be very useful if your local contractors charge a different amount.
To get a better number for this, you might want to try getting 2 or 3 bids in person from local people.
Also, some handymen will do their work in a more workmanlike manner than others, same with some contractors. So vetting them by seeing some of their current similar work is intelligent too. Because it comes down to more than money.
Also make sure to check if you need a permit for any of this, and if there is a "Remodel Tax" in your area.