Where should my money go?
Hello everyone so I just bought my first rental home it is an older home from 1909 it has a basement well kind of a basement so it is a weird design the ceiling heights are only 65 inches tall and it has concrete floors with a furnace and water heater right in the middle and it is small the basement is only about 650 ft.² the upstairs of the house has been partially updated the kitchen and bathroom Are the two areas where somebody put a little bit of money into it like newer flooring newer appliances some Ookay cabinets some OK countertops the two bedrooms and living room are original hardwood floors that I am probably going to get refinished so my question is I have some money to rehab the house my options are doing some thing with the basement which right now I’m not even sure if it can ever be considered a habitable space because of the ceiling height issue and it does not have egress which I could get egress but it’s not that cheap I would probably just finish it as a rec room or something like that or I could put a majority of the money into the upstairs by upgrading it it does have a sunroom at the front of the house which is a newer addition to the home which is in pretty good condition also probably would use some of the money to get a new paint job on the house I am just a little confused where I should put the money originally I was thinking the basement and had this whole plan planned out but now I’m starting to revert and go maybe towards making the upstairs and outside and landscape nicer
Take a look at the height requirements for a livable space in your municipality. You can look on the building department's website or give them a call. Are you trying to rent out the basement space, is that why you're asking about an e-gress window? You won't need any egress window unless there is a bedroom downstairs. To be considered a bedroom, a basement room needs a closet and an egress window.
If you are planning on renting out the basement in some way, I think that is your best bet to put your money for now. If the other items you'd like to upgrade are acceptable, I'd wait. Or, if you can't renovate the basement into a habitable space, do a cost analysis of what your renovations will run you, and expected rent after renovations are complete. Then check with the difference between current rent and after reno rent, and how long it would take to get your money back (cash on cash return). If its over a couple years out, may just want to save your money for other investments. Just my opinion!