When renovating a flip, not every upgrade deserves the same budget.

Question

Some improvements help the property stand out, while others may not add much value.

What's one renovation you think is almost always worth spending money on?

Matthew Morrow · Answer

@Siahna Im I'm with Vladimirs on anything that keeps water out. On older houses the money that mattered most for us was the stuff nobody sees, plumbing, electrical, roof. My first house we basically redid all of it just to live there. Buyers won't pay extra for new wiring, but they'll walk when the inspector finds old wiring. After that I'd probably put it into the kitchen and baths and keep everything else simple. Every property is different, but that's roughly how I'd do it.

Vladimirs Veiss - StopHolidays · Answer

Hi Siahna, good question to start the weekend with!

For us it's anything that keeps water out: roof, gutters, grading, plumbing. Buyers rarely notice it, but it protects every other dollar you put into the house, and it's often the first thing an inspector flags.

For what buyers do notice, it's the kitchen, priced line by line rather than as one "kitchen budget", because that's where scope quietly grows. What do you see your borrowers overspend on most?

Siahna Im · Answer

That’s a great point! Water-related issues can quickly turn into expensive problems if they’re overlooked, and a detailed kitchen budget can help keep costs from creeping up. It really comes down to balancing essential repairs with upgrades that support the property’s value. Do you build a contingency into your rehab budget for unexpected issues?

Ametria Chaney · Answer

For me, it is the kitchen and primary bathroom — but with a caveat: spend for clean, durable, and broadly appealing, not for luxury. Those are the rooms buyers and renters notice first, and a tired kitchen or bathroom can make an otherwise solid home feel dated. I would prioritize good lighting, sound flooring, updated fixtures, and a layout that works, before spending on high-end finishes that only a narrow group of buyers will value. I also put safety and function first: if something is broken, leaking, or outdated behind the walls, that has to come before cosmetic upgrades. In short, spend where people live every day, keep the finish level in line with the home and its price point, and save the splurge for the one feature that truly helps the home show well.

James Jones · Answer

Bedrooms and bathrooms. Specifically, the conversions that add a bedroom and a bath where the space already exists. We do 2/1 to 3/1 and 3/1 to 4/2 or 3/2 conversions all over Memphis — converting a carport or garage into a master bed and bath typically adds about 400 to 650 square feet. That spend moves two numbers at once: the rent and the ARV. A 3BR that rents at $1,395 becomes a 4BR that rents toward $1,950, and the appraisal follows the bed and bath count. Kitchens and finishes matter, but they're cosmetic — the market pays for beds, baths, and square footage. If a dollar doesn't add one of those three, I think hard before spending it.

Vladimirs Veiss - StopHolidays · Answer

@Matthew Morrow thank you, Matthew! I'd add one thing: it's all about priorities :) Every case is different, but we start by assessing the condition of the house, and today we can do it fully remotely. That first remote budget is usually 70 to 85% accurate. Then every job gets its own detailed calculation, block by block, and we can still be wrong. An old house may have been home to an electrician who redid all the wiring himself, and you can't tell that from the outlets.

That's why we split the work into blocks and price each one properly. You can always save on one thing and spend more on another, like the kitchen :) It also matters what the goal is and how the house was bought. Maybe it's your first home and you're paying rent in the meantime, with 5 kids and 3 dogs! There are many factors, and we adjust to every owner. It has to be a system that runs like a clock: when the light turns green, you just cross :)

I really enjoy talking with you! What else would you like to hear about our launch in Switzerland? Or share your own stories: builders, lost receipts, handshake deals :)

Have a great day!

Siahna Im · Answer

Well said! The improvements buyers don’t see can be just as important as the ones they notice during a showing. Taking care of major systems first helps protect the rest of the renovation budget. When evaluating an older property, do you usually set aside a separate budget for hidden repairs before planning the cosmetic upgrades?

Vladimirs Veiss - StopHolidays · Answer

@Siahna Im thank you! Rather than guessing a buffer, we price everything from the house plans and photos. Once we have the plan, we already know where pipes, wiring and weak spots are likely to be.

Surprises still happen. On our jobs in Switzerland we covered two of them at our own cost:

• A pipe burst during the work and flooded the first-floor ceiling of a private house, so we repainted the whole floor.
• The pipes were old and the owner didn't want to replace them. Our worker didn't remove a fitting correctly, it broke, and we replaced all of it.

A pipe burst during the work and flooded the first-floor ceiling of a private house, so we repainted the whole floor.

The pipes were old and the owner didn't want to replace them. Our worker didn't remove a fitting correctly, it broke, and we replaced all of it.

We collect every case like this into our model, so it knows in advance what can happen. For example, when you open the ceiling of a wooden house built before 1990, the likely extra work is already in the budget. Or we split the job into blocks and price the next block only after the ceiling is open.

Every house is a new case, and it's important to warn early, both the owner and the lender or insurer. After floods it works a bit differently, and we've learned to assess the condition of the house for that too.

Have a great day!

Siahna Im · Answer

Absolutely! A clean, functional kitchen and bathroom can go a long way without needing luxury finishes. I also agree that addressing safety and underlying issues first is important before investing in cosmetic upgrades. How do you usually decide which improvements are worth the extra spend on a specific property?

Siahna Im · Answer

Great point! Adding a bedroom and bathroom can make a big difference when the existing space and local market support it. The key is making sure the renovation costs align with the potential increase in value and rental income. Do you usually check rental comps first before deciding which conversions make the most sense?

When renovating a flip, not every upgrade deserves the same budget.

When renovating a flip, not every upgrade deserves the same budget.

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