What Have Been Your Biggest Value Adds in BRRRR Projects?

Question

I’m in the middle of my current live-in BRRRR, and it got me thinking about the value adds that have made the biggest difference in my past and current projects.

Right now, I’m focused on things like:

• Adding HVAC where there wasn’t any before
• Replacing old sewer lines
• Updating kitchen and bathroom with functional with modern finishes
• fencing and outdoor spaces (fire pit, seating areas, etc.)
• Interior upgrades like skim-coating ceilings, adding passthrough between kitchen and living room, and refinishing existing cabinetry instead of replacing

Adding HVAC where there wasn’t any before

Replacing old sewer lines

Updating kitchen and bathroom with functional with modern finishes

fencing and outdoor spaces (fire pit, seating areas, etc.)

Interior upgrades like skim-coating ceilings, adding passthrough between kitchen and living room, and refinishing existing cabinetry instead of replacing

These have all had a noticeable impact on rent potential and appraised value in my market.

I’m curious what other investors have found to be your BIGGEST value adds, especially in today’s environment. Are you finding it’s more about cosmetic upgrades, functional systems (roof, HVAC, plumbing), or adding additional units/space?

Would love to hear your experience so we can compare notes and maybe give each other some fresh ideas for the next project.

Sarah Claxton · Answer

We're in Philly, and we almost always add a powder room on the first floor, sometimes an additional full bath. A lot of these old houses don't have first-floor bathrooms. We love putting a laundry room near bedrooms if there's space. Also, nice finishes in the kitchen and bathroom. Good design goes a long way.

Greg Kasmer · Answer

@Robert Johnson - To me, replacing old sewer lines and infrastructure components (roof, electrical, plumbing, etc..) are the components that don't add a ton of value, but could certainly kill the cash flow / reserves on a deal. As a result, those are replaced based on lack of functionality, rather than style. Kitchens Baths, and upgraded lighting and fixtures seems to have the "Wow" factor that both appraisers and tenants pick up on and value.

Erik Raz · Answer

In my experience these will not make a major difference in the appraisal value. This depends on the appraiser a lot. I have seen many times where one appraiser undervalues a house by 5% and another appraises the same house 5 or 10 percent more. That's the way many appraisals are to today unfortunately. If you do add many things in one shot like a major overhaul than that might help.

With rents it's an entire different story. Like @Brian Teeter mentioned cosmetic things usually get noticed the most. In order of importance for us 1. Curb appeal 2. Kitchen 3. Bathroom 4. Living Room 5. Backyard etc...

Brian Teeter · Answer

Cosmetics work best for me in my market, Little Rock, Arkansas. Specifically solid surface counter tops, lighting and flooring

What Have Been Your Biggest Value Adds in BRRRR Projects?

What Have Been Your Biggest Value Adds in BRRRR Projects?

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