Redoing kitchen for refinancing.

4 Replies

You did not provide enough info for anyone to answer this question. Is the property in rentable condition now? Is it in financeable condition now? What are the rents in its current condition, and what would be the rent with a new kitchen?

You will need to ascertain the answers to these questions and then you will likely answer your own question. Speak to lenders and see what they say regarding this as well.

Originally posted by @Wayne Brooks :

A kitchen update, assuming it is functional, will not affect your appraisal by nearly as much as you will spend on the update.

Not sure I agree with that and it is certainly not across the board. Location and price points will play a huge role in if the appraisal will be affected more than the costs. I can say that in my area, a new kitchen spend of say $12k will absolutely bring an appraisal higher by more than that in my areas.

That said, the appraisal is only one piece of this puzzle as the rent ratio of old vs new kitchen is of more importance than the appraisal difference.