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 The house is a 3bd 1 bath home outdated to the early 60’s. I had my contractor basically fit the whole house, create an open concept for the whole first floor and put in a nice kitchen with granite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 The house had outdated carpet throughout and luckily there we nice hardwood floors underneath which we had sanded and stained for about $3000.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
What's your actual question, @Nicholas Mann ? Did you put in too much? That all depends on neighborhood, purchase costs, holding costs, expected rent, standard rent in your area for a 3 bedroom, etc.
Without knowing anything about your neighborhood or market, which means I'm guessing:
1. Open concept - probably not costs you will see any discernible benefit.
2. Granite, nice appliances - same
3. Hardwood floors - definitely worthwhile. Tenants hate carpet these days. Old growth hardwood is extremely durable.
4. Added/expanded baths - definitely worthwhile.
5. $40k - not completely out of line depending on what needed to be done. Most of the wrecks I get need 15-30k in rehab, and I do some work myself.
Yeah sorry I guess I was just kind of explaining the house.
The question I’m trying to ask is (and I’m sure this depends on market) what types of material, upgrades, finishes do you put in your rentals? Do some rentals just require the bare minimum improvements to get it rented or do some
Investors think it’s wise to go a little above and beyond in hopes for a higher quality tenant And better rent?
@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.