How Much Would You Spend to Renovate a Rental Property?

Discussion in 'Landlord & Rental Property Questions' started by LindaKay, May 2, 2014.

  1. sanders89

    sanders89 Member

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    For me, if the place has the potential to be really nice, and you can get quite a bit more money for it, then I say go for it and put a little money into it. If you know that the rent is going to be low, and you aren't going to be making that much money, then don't put very much money into the place, because it's just going down the drain.
     
  2. JackHark

    JackHark Active Member

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    I don't know if it's a rule and if it works on the extremities of property value (i.e. $150 000 house and $20 000 000 house) but less than 5% of the current/what you bought it for value of the house is generally reasonable. It all depends on what you need done, what fittings, what contractors etc.
     
  3. Silver

    Silver Active Member

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    For me it depends on the value of the rental and the comparables. If it's in a slum, why try to make it upscale? If it's upscale I'll spend upscale money to keep it that way.
     
  4. Gelsemium

    Gelsemium Senior Investor

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    I think that if you want to get a good lease contract you need to have a good property. Buying cheap materials in the long run will cost you more, so do the things properly and you won't regret it.
     
  5. Strykstar

    Strykstar Well-Known Member

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    It depends a lot on the type of property it is and the sort of tenants you are trying to attract.
    Other factors could be whether you allow dogs for example, if you do then there's a much higher risk of having your expensive materials damaged.
    The main point is that cheap does not mean shoddy, there are always cheap but quality solutions.
     
  6. ally79

    ally79 Guest

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    The location of the property would be a big factor for me, although I would never use the "best" materials for a rental property. I have seen what tenants can do!
     
  7. Peninha

    Peninha Senior Investor

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    That is another perspective too, we don't need to use the best, but we do need to use something with quality or else it will deteriorate much faster.
     
  8. JackHark

    JackHark Active Member

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    Yeah it's hard to guess how much you need to spend. There are so many factors that you need to consider; cost of property, how good the area is, quality of products used, finishings and trimmings etc.
     
  9. hnatalieann

    hnatalieann Guest

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    It depends of so many things. I wouldn't go for the cheapest that's for sure. Cheap usually doesn't hold up as well as a better quality item would. In fact it can cost you more if you have to replace it.
     
  10. dianethare

    dianethare Senior Investor

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    Am actually having a tough time in regard to this...but i definitely wouldn't go for cheap materials, cheap is expensive...in the long run i might have to renovate again something am not keen on doing over and over, i mean, there are better things to do than that, so to do a wonderful satisfactory job i might spend $12000...knowing that it will reap me much more after its renovated.
     

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