Quartz or Formica for my new Rental??

Question

I just bought a 2-family, and I am house hacking/BRRR. I found myself not wanting to take a picture of the kitchen when I was going to make my listing, so I figured that I should update it if I didn't think that it was up to snuff. I am also looking to add value to the house to get some more money out of it when I refinance out of my FHA loan.

I am planning on painting the cabinets, a new countertop, painting the cabinets, and replacing the sink. It is going to cost about 4k for a Quartz countertop, or about 1.3k-1.5k for the formica. I am hoping to get a long term tenant into this side of the property, as it is a 3br/2ba.

I am torn on which countertop to put in. I had about 15k in reserves going into this, and it looks like the kitchen is going to eat up between 6-8k. The kitchen is functional left as is, but I feel that updating it would attract a higher end tenant. Any advice would be greatly appreciated!

Pat L. · Answer

last one I updated 12 months ago went from $575 to $825.I pick up damaged cabinets from Lowes as they became available all in for $981. Regretted going with formica but added white subway tile backsplash & vinyl flooring ($200), scratch & dent fridge ($350), stove ($275), (very dented but repairable) over stove microwave $25 & a dishwasher $125. Then I put in a new (scratched) steel entry door $125 & it rented immediately.

Bjorn Ahlblad · Answer

For 100 a month more-maybe? I would spend as little as possible. I am all for bringing up the standard of my properties but over-improving a property is flushing money down the toilet.

Account Closed · Answer

How much more rent can you charge for updating the kitchen? 100-200 a month? So it’s a math problem for the most part. Is the investment worth the return? Will the kitchen update alone change who is applying for your unit. It’s still in the same location. Does it bump it into a different class type?Just asking questions that only you can answer. Good luck.

Charles Soper · Answer

Quartz is beautiful and expensive, laminate is functional and economical but installed right it can look really great. Renters are hard on properties regardless of class, just more so the lower you go. Ran into this a few months back myself, make the decision with the numbers, not the emotions.

Leroy Wallace Jr · Answer

Account Closed this is the struggle I am having with it. I believe that I may get about $100/month more, and possibly attract a higher quality tenant. However, I am doing about 30k in renovations to the other unit, and I have 15k in reserves. I just don't want to move forward on renovating the kitchen and possibly run into issues and end up out of my reserves.

Leroy Wallace Jr · Answer

@Jeannette C Thank you for all of the tips!! We are leaving the cabinets as they are, and the tile has been ripped out. I have started to lay some new tile!

Jeannette C · Answer

As stated, I'm a flip/hold investor and a kitchen designer. Heres my take:Don't paint the cabinets. These look like a good quality wood, which will hold up far longer than hand-painted wood. Wood is coming back. Not the cherry tone so much, but it's fine. On that note, the wood ceiling beams are awesome. Leave them!But paint the room's woodwork white, including those closet doors that seem to match the cabinets. What's to the right of the sink? Is something missing? No one uses a kitchen desk either. Perhaps bring the counter all the way to the fridge, and remove/raise that desk drawer? Leave open space underneath for a trash can or counter stool.Are you replacing the floors? They bother me more than the cabinets! But the tile can make do, because it will last. Maybe have the grout cleaned (I bet its light) and sealed. I agree with new counters, a very light quartz or granite. What are you color options? (Stone names). And a neutral tile back splash. You cant go wrong with white subway and white quartz. "Giallo Ornamental White" is a great, inexpensive granite.How about new appliances? Or at least a black fridge to match the others. And if you make the counter change mentioned above, leave room for a standard 36" fridge. What's over the range?You're also going to have to remove the corner wall cabinet to change counters. Fyi. And... if comp rents are 2400, why not ask 2400?! Or advertise as such, and negotiate only if you have to.

Toby Mims · Answer

@Leroy Wallace Jr We installed man-made quartz countertops about 5 years ago, and then we moved out and rented the home. Three tenants later, the quartz still looks great. Yes, quartz costs more, however, 5 years later, there are no burn marks, scratches, or damage. A bad tenant can damage anything, but you truely do get what you pay for. Will I use quartz again moving forward? Yes, I probably will. I like it because it is very durable.

Cody DeLong · Answer

@Leroy Wallace Jr I wouldn't even paint those. Spend the money on new hardware and backsplash. The countertop and cabinets are fine.

Leroy Wallace Jr · Answer

The property is basically two separate house joined by an enclosed breezeway. So the house that I am looking at putting this in on is a 2100sf 3br/2ba. Comparable rents in the area are about 2400ish, I am looking to rent it for 2200-2300. Below are pictures of the kitchen.