Over Rehabbing a rental?

[Nicholas Mann]

Hello Everyone,

I was wondering what everyone’s thoughts/opinions were on rehabbing a rental. I recently renovated my grandmothers old home in hopes to rent it out. The house is a 3bd 1 bath home outdated to the early 60’s. I had my contractor basically fit the whole house, create an open concept for the whole first floor and put in a nice kitchen with granite countertops and new appliances. We added a half bath on the main floor as there was none and we also expanded the upstairs full bath and updated it. The house had outdated carpet throughout and luckily there we nice hardwood floors underneath which we had sanded and stained for about $3000. I’ve heard people say not to put hardwood floors in a rental because they take a lot of damage but it would have probably cost more to put in a new flooring. Anyway the house is basically brand new after about $40,000 renovation and we are hoping to rent to a higher end tenant as it should be one of the nicer rentals in the area. Most people own there homes in the neigborhood but there is a good rental market as a lot of big corporate jobs in the area.

Thanks for any input

[Joe P.]

@Nicholas Mann generally you try and match the area/neighborhood. A finishes in a B or C neighborhood will get you rented, but probably wouldn't make financial sense. C finishes in an A neighborhood will mean plenty of days on the market.