Best upgrades for refinancing?

[Bradley Bohnstedt]

My wife and I bought a home for $315,000 and it appraised for $365,000. We want to remodel, knock down two walls, get rid of the 80’s carpet, popcorn ceiling, new trim.

How big of a difference would doing a kitchen remodel do? Original from the 70’s, we would update, open kitchen concept.

The goal is to get rid of MI, and cash out refi to purchase another investment property. Thanks for your help!

[Melissa Hartvigsen]

Hi @Bradley Bohnstedt

Remodeling rarely gets you more money than what you invested into the project.  Here in the Pacific NW, one of the biggest value adds is replacing carpet with actual hardwood floors (not laminate or engineered wood). A $25,000 cost for a kitchen remodel here might increase your property value by $18,000 to $20,000.

Remodel.com puts out an annual report of what you can expect from your remodel, I pulled this image from their site to help you with your decision: