Remodeling My First Unit On First Investment Property!

[Brett Riemensnider]

 Looking for some insight on a few things before starting construction on my first rental property! Area is not a high end area by any means, all units don’t have laundry as well as no centralized air. Trying to add value but need to be mindful of spending and not overdo it. Basically everything I’m looking for is what’s the biggest bang for my buck.

1. 1. Does anyone have a recommendation for a good window ac unit? I see some that get mounted to a wall, some in the window. 3 bedrooms and only 750sqft.
2. Swing doors, front doors and trim. Is a store like Home Depot the spot to get these items? Should I be shopping around more on these?
3. 
   2. LVP. Trying to avoid having too many transitions in carpet to hardwood/vinyl flooring and plan on doing LVP throughout the entire unit, bedrooms and bathroom included. Any suggestions on a good quality LVP that will last while also being a good price? I heard to get the ones with the backing to make for easier DIY install but have heard you don’t want to go too cheap also. 
4. 
   3. Shower. Window in the shower has is cased with a stool and apron. Obviously wood does not belong in a shower. What’s the best way to remodel this that will be the most cost effective? I thought a block window with a shower insert going right up to it but maybe that’s more expensive and more work than I should be doing.

I appreciate all the feedback I’ve been getting. This property I’ve planned on holding for only about 5-7 years due to it being 130+ years old. If anyone has any other rehab like advice I’d love to hear it! Pretty anxious about this job I’m taking on so anything to calm the nerves is appreciated! Thanks!

[Brett Riemensnider]

Quote from @Kevin Sobilo:

@Brett Riemensnider, here are a few things to think about.

1. Look at rentals in your market and see what is EXPECTED from the kind of rental you are trying to create. It could be that the typical rental is circa 1990. So, you may not need to do all the improvements you wish. This isn't about what YOU like, its about what gets you more rent as most rentals are for cash-flow.

2. Identify some sizzle features that are NOT expected in typical rentals in your market and look to add a couple (NOT ALL) and only the ones that are easiest to add (low hanging fruit). That might be adding a washer/dryer, dishwaher, microwave hood, or even just allowing pets. Like I said you want to find the EASIEST and CHEAPEST way to be a little better than the typical.

3. Home Depot & Lowes are fine for commodity items. Get their store credit card and try to make LARGER orders through their pro-desk or pro-website. If you make sufficiently large orders they will give you discounted pricing like a contractor saving you 10-20%.

4. I would not worry about transitions between flooring types in a rental unless it was really high end maybe.

LVP is good stuff, but there can be challenges in old houses. LVP may not want to stay locked together if the floor isn't close to perfectly flat. Often old houses have some rooms which are not flat even if they appear to be so to the eye.

Also, when you are spending money, you want to make the biggest difference for the cost.

For a typical rental of mine, I will use LVP in the living room and maybe dining room (public areas of the house). For hard working rooms, I typical use peel & stick vinyl because it doesn't need a professional installer (myself or a handyman can do a good job). For private areas of the house like bedrooms, I refinish the original wood floors. I own a sander so its not expensive to do. Also, even an old beat up floor looks decent and bedrooms usually have a lot of furniture so you can only see a small part of the floor anyways and tenants may even put down a throw rug.

I feel like this approach gives me the best bang for my buck since its cheaper than all new LVP and will be easier to maintain the hard working rooms. You can easily replace a damaged tile with peel & stick unlike regular tile or LVP.

5. I typically just remove windows and block up the opening in bathrooms. They really aren't necessary and like you said create their own issues when they are in a shower.

6. I would not worry about a homes age. If its well built and maintained, it can last indefinitely.

7. Keep in mind the decision making criteria is different for your primary residence versus an investment. Keep that in mind too when listening to advice from others. People have a tendency to want to do what they know and what they like which is fine for your primary residence, but not always the best choice for an investment.

Think of the EXTREME example where someone buys a ratty house in a TERRIBLE neighborhood and then GROSSLY over improves it because that is what they know and like themselves. They won't get rent to support that investment in that neighborhood and won't have created the equity they need to even break even because properties in that area aren't worth as much because its a TERRIBLE neighborhood. So, keep in mind your market and what your target property result looks like in that market. 

Fantastic advice Kevin! Thank you!