Any advice?
Would it be better for me to add square footage to a rental and fix it to “entry level” OR
spend the money and fix very nice (add A/C, Granite etc?)
Would you decision be different for different types of homes?
Any advice?
Don’t improve past the neighborhood. If the neighborhood does no have granite, don’t put granite. You won’t get it rented any faster. I would not add square footage at all. If the house is obsolete, I would bring it up the 2009 but not living space or even a bedroom or bath. You won’t get any more rent and it won’t rent any faster, it will just be a project.
Hi,
I absolutely agree with Bluemoon06 as you will not recover cost's to add square footage as a rental and upscale rental finishes only help in very upscale area's and properties of merit.
We finish 95% of our rentals with formica counter tops and very basic burch kitchen cabinets.
We only do a full remodel on our rentals and do nicer finishes if were going to sell it. This is the only time the cost’s make sense in returns.
Good luck,
GR
It doesn’t make any sense to make any major structural changes or expensive improvements to a rental. You buy a rental because you can make it cash flow based off the existing structure. Don’t over-improve.
Great advice on here, I would agree but one thing I have noticed if the unit is a higher end, granite has dropped in price big time esp. odd and end pieces due to quartz taking some market. BUT granite chips, water stains, cracks so lower end units no way, let them put their cigs out on the cheap stuff it will still burn but easier to replace. Adding sq ft also adds to water bill more people more wear and tear more people to give eviction notice too.
Like a coin it has both sides. One is location, neighbor. Another is competitive advantage. If you look better, serve better you’ll definitely topple other competitors. Otherwise following your neighbors is advisable. Cause customers for that particular place will devalue your ones. So extra investment would be no fun at all.