Remodeling a SFH Rental - Where do we increase rent value?

[Mitch Polatin]

New to all of this.

We have one SFH rental in Los Angeles renting for more than $12k a month.

We may have another in Florida at about $8k a month.

These are nice SFH.

My question is, what things are worth updating.

The SFH in South Florida is in a very nice area. Kitchen and floors are decent but maybe 10 years old.

It’s maybe $30k for new floors.

$30k for kitchen cabinet and counters.

It’s not terrible now at all. Would these updates see a marked increase in rent? Is it worth it long term?

Also, someone told me about depreciation and said if we invest in these updates we can make them somewhat tax free by using depreciation over a few years?

Any advice on how surface renovations help out rentals would be great.

Thanks.

[Charles Cooper]

Ya that’s hard to measure the exact rent. You just have to compare with other rentals that are currently rented or have been rented. Just think, if you were a tenant, how much would YOU pay to rent your house compared to what’s on the market. Kitchen and bathroom remodels almost recoup all costs invested in them. Just think of the long term benefits of adding items, although you may not get a huge increase to pay it off at first....but you will make your property more marketable and easier to rent, tax deductions and increasing the value of your home. It’s a win win, just don’t spend money if you don’t need to on improvements. Some improvements I did myself to save money on my investments, quite a bit of info on anything and everyone on YouTube :)