Is a Remodel Worth the Cost on a SFR Rental?

[Sandra Kennedy]

Trying to decide if doing an addition will be worth it.  I have 6 rental properties, mostly sfr.  One property comes vacant this month.  2bd,1ba,1car,  768 sqf., worth about 150k.  The neighborhood is turning over with updates and remodels.  Very few rentals close by (at least for now, in winter), but desirable location.

We will do some updating no matter what:

New laminate floor in kitchen/hall

Siding needs replacing (have some insurance $ for that)

Fresh paint

Needs new windows (maybe).

Needs a bunch of concrete work (garage floor, driveway, stoop, walk to door).

With those improvements we should be able to get at least $1000/mo.

A room addition to add a large ensuite Bedroom/bath, and a laundry room to get the washer, dryer out of the garage, the bid came in at 59000 (This includes the siding).  The concrete was another 12000 (high).

With all that, the rent should be $1400/mo. (If we don't try to rent it in December).  There is no current loan on this property, so it makes my head hurt to refi it.  But I am thinking on taking out 120k for all. 

 Is the remodel a good plan, or forget it and just do the cosmetic stuff?

It has a big back yard, but no room on the side to expand garage.  No basement.  Inherited from parents a long time ago, want to keep, good location.

Love Bigger Pockets and all of you out there!

Thank you all for your help!