Best and worst rehab value for moeny

6 Replies

I'm keen to know, whether you're a BRRRR strategist, a flipper, a buy & hold, or just a renovation guru, what are some examples of the best and worst rehab items you've spent money on.

If you can focus on helping us all with understanding what you spent $ on, why you thought you should spend it, and then what the ROI/result was.

Hopefully in the process we'll get some insight into what to consider doing (all the time) and what to avoid!

I love this question, but have only limited experience so far - following and hoping that some seasoned pros weigh in!

Here is a super cool answer I got back via IG - rentalstowealth you might recognise the name from the most recent new podcast on Bigger Pockets! Super great answer below!! What do you think? 

"Ok best spends.

A sheet rocker- we tried it ourselves and it takes so damn long and doesn't look as good and for the price you can pay someone else, it's totally worth it.

Updating capex items like appliances, roofs, HVAC, plumbing, sumps. Things that prevent us from getting maintenance calls.

Worst

we over paid a contractor.

And we put glass fronts on a kitchen cabinet that looks great but kind of risky for a rental and unnecessary"

@Jason Weeks

I typically gut the kitchens and bathrooms. If I can finish a basement I'll add a bedroom. The idea of the BRRRR strategy is you need the property to appraise so I will fix them up almost flip ready. It provides a few advantages; higher ARV, higher rents and better quality tenants. If I have a two bedroom house and it has 1000 square feet or better, I'll try to add a bedroom, it will increase your ARV an easily $15,000.

Originally posted by @Kenneth Garrett :

@Jason Weeks

"If I have a two bedroom house and it has 1000 square feet or better, I'll try to add a bedroom, it will increase your ARV an easily $15,000."

--> Easily some of the best advice you'll read around Ken. Thanks for sharing.

@Annchen Knodt - no problem. Happy to share my experience. Just did a fantastic mini renovation with a cool contract in Birmingham AL, had a good experience, high quality, putting in a tenant in there shortly. I think from my perspective the answer is if a contractor puts something in there as an "optional" you should probably do it while they're in there, they really mean it should be included. And if you ask what it is, you should get the spec on it so you can find out whether they're over speccing your house / MFH, or it's just fair.