Countertops in Section 8 Rental near Boston
Hi BP Community,
I am working on rehabbing my first rental investment, SFH with 2 bed and 1 bath , that I plan to rent out for section 8 tenants in a small town near cape cod. It is a C/C+ town, but I am in a B neighborhood (across from river that leads out to Cape Cod Canal). This is a BRRRR deal and I am looking to get the appraisal in June, which will be enough time for the seasoning period, so I want it to appraise as high as possible to pull out as much of my money as I can.
I replaced the cabinets with the Hampton Bay Shaker White Cabinets from HomeDepot, which I know are not high end, but I am now wondering do I install a nice countertop (granite/quartz) because they are durable and its a good thing to have for my appraisal. Or do I go with Formica countertops since it will be lower end rentals and not good quality cabinets so I may have to replace it all in 5 years?
Thank you for the help!
If it were me, I'd first check your competition in that particular neighborhood and see what the standard is. Weigh that against cost and potential damage your tenant might cause. I did a BRRRR in Dorchester and the guy doing the appraisal barely noticed I had Quartz. I made sure to mention it but if I hadn't said anything he wouldn't have cared. I would focus on making sure things look new and clean, your safety stuff is updated, working and to code, and curb appeal. First impression is huge.
Hey Brendon,
I personally think even a low end granite is better than Formica, You will see that in the long term it will last longer as tenant tend to put hot items on it and you will end up spending more.
Don not do it for the appraisal do it for having less headaches.
Hope this helps.
Jon
@Jonathan Ramos@Christian Nachtrieb Thank you both for the information. I was leaning Granite/Quartz, I just don't want the cabinets to break and have to then worry about pulling the countertop off and ruining it. Its less than 22 sq/ft of counterspace so luckily it won't be too pricey. Thank you very much for the help!
Are you in the Buzzards Bay/Wareham area? What's made you decide to go the section 8 route? If you go with a hard stone over Formica, you'll be able to attract higher-quality tenants. As it's probably been repeated many times, even tenants watch HGTV and want nice finishes.
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Real Estate Agent
- http://www.InvestCapeCod.com
@Mason Hickman yes I am in Wareham. Wareham is actually pretty unique where the Section8 payouts are at a Boston rate, so the rent payout is higher than market rate.
@Brendon Kerrigan
I always do Quartz in my BRRRR's. Because I'm looking for the highest appraisal and the most qualified tenants section 8 or not i make the asset appealing and sellable if I ever need to exit. Plus they cant stain or destroy quartz so its a win win!!!! Spend the money 1 time
Quartz is too much money, get an entry level granite. Just call up a handful of local shops and ask them how much the cheapest stone they have installed is. For the extra few hundred dollars and how long it lasts, you will make your money back after the first turn over. The cabinets can hold them, I have seen some of the cheapest 3/8" particle board cabinets hold stone without issue. Even the cheapest in stock cabinets at HD/Lowe's can hold more than you'd ever think. The problem with them is longevity as they are nor durable and fall apart when they get wet
@Brendon Kerrigan I have a 1980's rental with original formica in a woodblock pattern. It is a very durable surface and home depot has a nice white option in stock that looks like quartz.
@Brendon Kerrigan Hi Brendon- Since the area you’re trying to cover is smaller, you might even be able to get away with asking for granite remnants. Those are the pieces left over from other jobs and depending on what they have left over, it’s significantly cheaper. The other option is to ask them for the “contractor’s special”. These are the lower end granites that are mass installed in your usual high rises and condos. They look great and go with every color scheme. Good luck!
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Real Estate Agent MA (#9070282)
- [email protected]
@Brendon Kerrigan I'm a Section 8 landlord in St. Louis. I follow much of the advice you've been given - I match the neighborhood. I just put granite in a Section rental but it went with the rest of the neighborhood and I went with the thinner granite.
I've done this in a couple other properties and haven't had any issues with the tenants tearing it up. I also find it attracts better quality tenants (you'll attract not great tenants too so just be sure you screen thoroughly).
Depends
how much is the house worth?
How much for Formica?
How much for granite?
How much for quartz?
Not really sure how you or anyone else can give advice not know at least this sort of information
@Bryan Devitt@Sonia N.@Marian Smith@Jennifer Donley thank you all for the help!
@Michael Plante I bought the house for $175 and I estimate the ARV to come in between 220-230, which80% LTV would be $225. I only need about 22 sqft of countertop so I was leaning just go granite, I believe it ranges from $40-60 for low to midrange options. The Formica is very cheap, couple hundred if that.
Originally posted by @Brendon Kerrigan:@Bryan Devitt@Sonia N.@Marian Smith@Jennifer Donley thank you all for the help!
@Michael Plante I bought the house for $175 and I estimate the ARV to come in between 220-230, which80% LTV would be $225. I only need about 22 sqft of countertop so I was leaning just go granite, I believe it ranges from $40-60 for low to midrange options. The Formica is very cheap, couple hundred if that.
Personally I would do quartz
some places have minimum of 50sq’ so that may nit work
I would Call other investors in the area or go on a local Facebook group and ask for references for counter top companies
We own and manage a bunch of units in the Northshore and have some section 8 tenants in Lowell, Leominster, and Fitchburg. If you already had old Formica I’d recommend doing an epoxy finish over the top. It’s cheap, durable, and looks great. We just did that in 2 of our section 8 units in Lowell. But given the whole scenario I’d recommend doing the granite. The remnant idea is great those are much cheaper and you probably don’t care too much about the color as long as it’s a neutral. Also make sure to have the granite company do the undermount sink for you, typically they’re way cheaper through the granite company than you could do yourself.
We use the HD Hampton bay Cabinets as well and they’ll last longer than you think, assuming you get decent tenants. When the doors get damaged you can just replace the doors and hardware for pretty cheap, the actual cabinets should hold up well unless someone intentionally damages them.
One word of advice on section 8 kitchens, avoid dishwashers and fridges with water hookups (water or ice) it’s just one more thing that can break, and leak, and they won’t impact the gross rent.
Best of luck,
Jon
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Real Estate Agent MA (#9559678)
- 978-710-8611
- http://www.candorealty.com
- [email protected]
@Jonathan Bombaci Thank you for the info, I am going to try the remnant pieces of granite and the fridge doesn't have anything like that and I don't plan on hooking up a dishwasher. Thank you for the help!
@Brendon Kerrigan First thing if you are renting Section 8 is to make sure the countertop is durable along with all of the other finishes in the home. No reason for quartz. I'd go with a low-mid grade granite that is cost effective, for instance ask a local granite shop for remnants or patterns they are looking to unload to make room for new slabs.
Also, the countertop style and look will not sway an appraisal much either way unless it was deplorable so just make it functional and clean, don't break the bank.
Hello Brendon, Epoxy countertops are also a great solutions for rentals. They are much cheaper than granite, just as durable and look great. I primarily rent to section 8 and epoxy has been a great solution for me. Check tangraepoxy.com, you can mention my name. Good luck!
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Real Estate Agent NH (#077432) and MA (#9558881)
- (857)222-0707
- [email protected]
Originally posted by @Brendon Kerrigan:Hi BP Community,
I am working on rehabbing my first rental investment, SFH with 2 bed and 1 bath , that I plan to rent out for section 8 tenants in a small town near cape cod. It is a C/C+ town, but I am in a B neighborhood (across from river that leads out to Cape Cod Canal). This is a BRRRR deal and I am looking to get the appraisal in June, which will be enough time for the seasoning period, so I want it to appraise as high as possible to pull out as much of my money as I can.
I replaced the cabinets with the Hampton Bay Shaker White Cabinets from HomeDepot, which I know are not high end, but I am now wondering do I install a nice countertop (granite/quartz) because they are durable and its a good thing to have for my appraisal. Or do I go with Formica countertops since it will be lower end rentals and not good quality cabinets so I may have to replace it all in 5 years?
Thank you for the help!
@Brendon Kerrigan, it depends on what your goals are in investing in RE. I really like Columbus OH because its beginner friendly (in the sense that prices are appreciating so almost anything you buy is worth more the next month) and there is a huge tenant pool to choose renters from.