How much rehab is enough??

[Billy Gullett]

 I'm about to start renovating my rental to get ready for appraisal and refinance. Trying to get top dollar appraisal. Should I go all out and make it like new again with high quality expensive material or should I go less expensive but still like new? Struggling with this issue help please!!!

[Nicole Pettis]

@Billy Gullett

There are a few things you have to take into consideration.

• How much is all out? $10k, $20k? How much can you afford to put into the property
• What will the return on investment be, meaning if you go all out with high quality will that in return bring in better and higher paying tenants.
• Market value - Compare the comps in the area that are in the appraisal range that you are hoping for and see what they deliver. Do they have laminate or granite countertops? How "new & updated" are they. Because that is what the appraiser is going to look at. They are going to look at 5 different properties from the highest to the lowest and see where your's lands and make their assessment from that information. 

At the end of the day, this is still a rental. So what finishes are you going to be comfortable with where you won't have to spend more money to replace if they get damaged. 

Hope this helps.