My rentals have nicer kitchens and baths than my home...

[Michael Healy]

Anyone else in the same boat?  I've been wanting to renovate my home kitchen and bath since I purchased my coop three years ago, but I acquired two multi-families in the fall and have been addicted to making improvements to command higher rents. I'm still investigating the wisdom of that strategy with my first round of improved units about to go on the market.  

Among the changes I'm making:

• Pulling up old grey w2w carpeting and refinishing the wood floors underneath
• Pulling up vinyl flooring in kitchens and bath, replacing the completely rotted out sub-flooring underneath, and replacing with tile
• New Wolf base-level (but solid wood) kitchen cabinetry, sink/fixtures, and quartz countertops
• Many miscellaneous repairs to moldy/rotted walls in the baths.

My hope is to realize an incremental annual premium equal to 15-20% return on my invested capital.

Am I on a fool's errand?  I know it's highly dependent on location. The properties are in an A neighborhood, but the overall demographics of the county are flat, and most renters work in the second home service or non-profit economy. 

And for me there's something about feeling a sense of pride in what I'm offering.

I also don't plan to live on cash flow for at least 5-7 years as I have a good paying full time job. 

Any experiences or perspectives welcomed.

MH

[Justin Fox]

If you want to update your kitchen and baths, do it.  You know it won't make you any money, but if cooking eggs in a 15,000 kitchen and pooping in a 10,000 bathroom make life worth living, go for it.

You know it's not though, and that's why you're putting that money to work.

Every one of my tenants have a better car than me and live in new or < 15 year old home.  I'm okay with that.  Another saying is, "The carpenter's home is never finished."