When is enough, enough? By that comment, I can only ascertain when it comes to how far should you remodel an investment property. It depends mainly on your budget and the local area you are in. Yet, JJ and I ask this question—-“What would make this place make a potential buyer or renter say I want this place without a doubt of ever looking at another place?” That statement right there is enough to tell you a lot in why we remodel the way we do.
We used to teach in our classes that you should update and remodel within your given budget but also to the level of the neighborhood and to the point where you would feel comfortable living in it, if you had too. But then, we have learned that many people don’t have very good or clean lifestyles compared to what most home buyers and renters look for in their next home.
In lower end neighborhoods, most investors can get away with making a fast sale or rent by just fixing the absolutely necessary items such as replacing leaky roofs, a nice paint job inside and out, cleaning out all trash, making sure windows, doors, bathrooms and kitchens all work without leaks or maintenance issues.
In middle class neighborhoods, an investor should be willing to do more to get his property to move quicker. They should be willing to update at least the most important rooms of the house such as baths and kitchens.
In top notch neighborhoods, you better have a good nose as to what good style is for those earning six digits, and neat features such as whole house sound systems, security, granite countertops or whatever the latest craze that is in with the wealthy.
When in doubt, bring the property in question at least up with the surrounding neighborhood and then a little more to be sure that it will be the best one on the block compared to the rest upon first sight. It should be clean and simple, the materials used should be the same as the other homes on the block. The property shouldn’t exceed “the Joneses property” to the point that stands out so badly that the property is waving a ‘red flag’ of ‘you really can’t afford me’ compared to the other homes in the area.
Crissy
