Where to spend/save when doing a BRRR.

[Brandon Montgomery]

I'm in the rehab for my first BRRR. I have a written out plan for the house and have completed 75% of the work and should be within budget on the "must do's." Now I have a few "want to" items. My question is, what are the items that get the value the highest for the appraisal? I'm sure there is a fine line that I haven't discovered yet when it comes to where to spend and where to save to keep budget low but add the most value for the appraisal and get the most back out. Any tips?

[Greg Scott]

Most of how you spend the final dollars will depend on what is expected in your neighborhood. 

This is an extreme example, but hopefully it will get across the point.  In Michigan, I've read several articles that a pool adds zero value to a house.  After all, it is expensive and you can only use it about 3 months a year.   On the other hand, I had a rent property in Texas and was debating filling in the pool.  The appraiser told us the valuation would be $7K higher if we kept the pool.

Check for sale listings in your area and look at the pictures.  That should give you a good idea what is important.