BRRRR - Am I over improving my rentals?

[Adam Craig]

I am wondering if I am over-improving some of my rentals with the BRRRR strategy. Specifically regarding painting cabinets instead of replacing them and putting in shower surround instead of tile. Normally we have brand new kitchens with quarts countertops and brand new bathrooms with shower tile design. Most deals I borrow 100% of the money for the purchase and rehab since I am always happy to use other peoples money rather than mine so I figured rehab them similar to a flip because many times I end up selling within 5 years for one reason or another.

I recently purchased a house that had a brand new shower surround so I left the bathroom how it was and it rented in 10 days at the same rent I would get if I redid the shower. This made me rethink my rehab process.

Part of the reason I do kitchens and baths so nice other then to get a premium on rent is if I decide to sell in a few years I dont have to spend my own cash updating the kitchens and baths.

Am I adding un-needed work by doing them so nice? I know a new kitchen will help sell a home fast but will a tiled shower as opposed to regular surround?

[Jeff Morelock]

Sounds like you may already know the answer. As far as your five year exit strategy, how "new" do kitchens in rental houses look after five years? Maybe doing less now, and then some upgrades when you're ready to sell is something to consider.