Renovation Cost Breakdown

[Justin Goodin]

I spent $16,444 renovating this 3-bedroom apartment at one of my properties.

Here's the breakdown:

- Kitchen faucet: $76
- Thermostat: $30
- Bathroom hardware: $34
- Toilet: $94
- SS stove: $250
- SS microwave: $150
- SS fridge: $781
- SS dishwasher: $349
- 6 MIL LVP flooring: $2,840
- 4 black matte LED ceiling fans: $204
- Bathroom faucet: $77
- Bathroom vanity: $189
- Bathroom mirror: $60
- Lighting fixtures: $150
- White shaker cabinets: $2,142
- Black matte cabinet handles: $36
- Blinds: $88
- Black matte hinges: $51
- Black matte door knobs: $108
- Blanco single bowl sink: $100
- Blanco sink rack: $25
- Quartz countertop & install: $1,100
- Smart lock: $40
- Paint & materials: $565
- Random materials/parts: $259
- Labor: $6,646

Renovation time: 30 days

Previous rent: $575
Signed leased: $1,610

Long term hold strategy.

I'm choosing to renovate every unit to a premium level finish with high quality materials. This should allow me to have less maintenance issues in the long run.

Let me know what questions you have about this interior renovation.

[Arn Cenedella]

@Justin Goodin

Excellent content as always my friend.

Critical to know what unit turns or unit renovations costs.

The level of renovation should be made on the basis of what provides the highest return on investment for one’s renovation dollars. Units should not be “over” renovated if the rent increase does not justify the cost. 

Here are my “down and dirty” rules of thumb:

Minimum $5,000

Average $10,000

Significant $15,000 to $25,000

When I evaluate value add offerings, on my first pass at underwriting, I just assume $10,000 per door. If the numbers are “close”, I dig deeper and fine tune analysis.

The more units one turns or renovated, the better one gets at estimating costs.

Looking forward to a good 2024!