I have a dilemma. Should I invest more money in the Kitchen or an extra Bedroom. I have a 3 Bed 2 bath house and need the value to go up. So should I put more money in the Kitchen or add that extra bedroom.
This is a rental, so whats your thoughts, and please help.
Without knowing more about the house/area, my initial thought is the kitchen. Having a 2:1 ratio for bed:bath doesn't sound appealing to me. Kitchens are always huge selling points too. I'm no veteran to this but these are just my thoughts. Good luck!
kitchens are always a good investment.. If you invest in your kitchen you will attract renters quicker and more consistently than if you invest in another bedroom.. The idea is you may get more money each month for an extra bedroom but the demand for more bedrooms vs what you have - 3 bed 2 bath + a nice kitchen is greater for the 3 bed 2 bath + a nice kitchen. It will be easier to attract renters with a nice kitchen. Plus down the road if you ever intended to sell better kitchen means quicker sell and often ups the value.
I'm tempted to say it would depend on the area and type of renter. Also are you planning to sell this down the line, or keep for long term cash flow? If it's in a lower income area and you don't care about renting to section 8, the extra bedroom might bring in more money. If it's a more upscale area, or you are planning to sell it in a few years, I would put the money in a kitchen.
No I don't plan in section 8, and no I don't want to sale. I want the house nice enough to where I can get the best appraisal value for my money. This will be a house I use as leverage.
If you're looking to push your appraisal value, then bedroom ALL DAY. That way your property gets lumped into 4 bdrm comps instead of three bdrm comps which will give you a better appraisal.
Also, another bedroom opens your renter pool as well, a nicer kitchen does not.
That way if you're renting to a family of four (mom/dad, 2 kids) that gives them an extra room for guest/play/office etc.
Do some inexpensive kitchen upgrades (paint cabinets, new hardware, backsplash) and put the rest towards the new room.
Is it a child "rich"" neighborhood, or more couples with no kids? I feel a neighborhood with parents/kids being the norm, then 2 bathrooms are a must. A more yuppie/professional/no kids neighborhood, the kitchen/entertaining area is the focal point.