How to calculate ROI on rental updates

[Braden Hobbs]

Hey all, I want to get some opinions on how you all decide if updating rental property is worth the investment.

I have a four-plex that could use kitchen updates to make the place more appealing to renters. I’m trying to decide if it’s worth the $. So far I am thinking I need to see what the potential increase in rents would be but also the potential decrease in vacancy rate.

What is your process to determine if an update or rehab is a good investment?