Should I Update it or Rent it?

[Jason Kucharski]

I have a 2/1 rental in a A+ area that easy to rent. It has a simple kitchen that's had a 'lipstick' update but doesn't have any modern amenities (full-size stove, dishwasher and disposal). The cabinets are mixed and dated. I've priced out a full kitchen remodel with all modern convinces and stainless appliances which would cut my emergency savings in half. This upgrade could boost the rent 300+ dollars a month. It would take 2 to 3 years to recoup the investment. Is it wise take a chance on a higher rent upgrade and deplete my financial cushion or just lease it back out to build up more reserves? 

[David S.]

If you have the capability i.e. capital, I would definitely upgrade.  Being that with a $300 per month increase in rent that could pay off in 2 years, it would be a great investment.  You would potentially increase the amount of better qualified tenants.  I was told recently that my unit was too high in rent without that person ever seeing the unit.  However, with a recent renovation, I think I should get the top end of the rent range.  And I get it every time with a fresh, updated unit.