1100 SF is too small IMHO. Best to save your money on this one. I would only spend money if you can absolutely get that ROI quickly. Sounds like a $50k remodel for maybe an additional $500 a month? 100 months? Nope.....
Thank you Jevon.. this is 1100 sq ft. We’d turn the biggest bedroom to the family/tv room and convert the current tv room with an attached nook into two 10x10’ bedrooms
1100 SF is too small IMHO. Best to save your money on this one. I would only spend money if you can absolutely get that ROI quickly. Sounds like a $50k remodel for maybe an additional $500 a month? 100 months? Nope.....
Yes very helpful thank you Jevon, Bruce, and Theresa! Big debate with my wife and I. This clears it up and we’ll be into purchasing our next property instead. Have a great week ahead!
The decision between rehabbing your current property versus buying another multi-family really comes down to your personal investment goals and financial situation. Rehabbing your current property may require less upfront capital and could potentially increase the rental income and overall value of the property. However, purchasing another multi-family property could diversify your portfolio and potentially increase your overall cash flow.
As for the cashout refi, it's important to carefully consider the interest rate and associated fees to ensure that it makes sense for your financial situation. It may be helpful to consult with a financial advisor or real estate professional to help weigh the pros and cons of each option and determine the best course of action for your specific circumstances.
Hi Neil! I love Boston. I actually grew up there before relocating to San Diego.
I agree with Bruce. Although your property does have potential, it may not be worth rehabbing between the size of the bedrooms as well as including an additional bathroom. I also feel that it comes down to your investment goals/current finances.
There are pros and cons to both decisions. Best of luck with what you decide to do!
Thank you Alli! Appreciate the insight. We’re going to rehab the current bathroom (instead of adding bedroom and extra bath) and then move onto the next 2-4 family.
This is a math equation. How much additional rent is converting the 2/1 to a 3/2 going to bring? What is the construction? How much equity does it force? How much money will your mortgage go up? Have you considered asking the bank for a construction loan or taking an HML
I like your ambition, definitely on the right mindset. For this specific property I would have to agree with the other comments; The Sq Ft is not right for a 3br. Spacious bedrooms can attract quality longer term tenants. Although if the property is in a college area, size of bedrooms won't matter that much.