First time doing a rehab in a luxury neighborhood... any tips??

Question

Hi BP - In two weeks I am doing my first purchase and repair in a very nice neighborhood in Blue Springs, MO (an "A" neighborhood in Kansas City). It is a 5-plex with 4 studios and 1 one-bedroom. I have only ever done BRRRRs in B- or C+ neighborhoods, so I was wondering.... what kind of things should I look to add into a nicer property? So far I have: granite countertops, stainless steel appliances, and breaking the kitchen open so that it's more connected with the living room (right now the kitchen is closed off). How else can I make this feel richer and more luxurious ? Any colors that I should aim for? Anything to put in the bathrooms? It is going to be a full rehab so I am open to any suggestions on how to efficiently add value. I am a total newb at repairing in luxury areas, so any thoughts are appreciated

Matt Pritchard · Answer

I think in that price range you are fine with just freshening it up. New flooring, new paint, new kitchen cabinets, and bathroom tile. Honestly, just keep it neutral. Move towards gray's and white's and you'll be fine.

Antoine Martel · Answer

Rohan,This sounds like a great project. What you have set up sounds like a good plan. I would reach out to your contractor or agent out there and see what they recommend. I would also check out some comps and see what they are putting into their units.I am also in Los Angeles and have been investing over the USA just like you. I'd love to meet up and talk business this week or next! Let's chat. I just connected with you.

Chris Kelly · Answer

Comp it out! Look at the pictures of your comps. Also, your realtor should be a big help. Since this is a large project, when you sign up with Wayfair.com, if you spend more than 10k they add a designer for no charge.

Jeff Berg · Answer

Hi Rohan,Hire a professional renovation designer, or an architect who specializes in rehabs.Especially since you have studios and a one-bedroom, you need someone with multi-family-specific experience. You have to know your target demographic, appeal to them while still doing a very tasteful rehab that compliments the existing architecture.I did small multi-units in LA for thirteen years, as well as SFHs across the entire budget spectrum, budget to multi-million dollar homes, interior to exterior, and specialized in kitchens and baths. True, the demo in LA tends to be much hipper, but a high-end market is still MUCH more educated and demanding of good design, no matter the location. A poorly designed renovation there can sit on the market forever, costing you FAR more than hiring a pro.

Dorian Jones · Answer

Kitchens and bathrooms sale properties in these areas. Nice sinks and faucets in both kitchen and bathroom are a must. Adds a lot of value and not too expensive to do. Not familiar with the area, but a more modern look will definitely bring in the right people(at least in LA). Nice curb appeal, nice porch lighting or something like that. That's my opinion and I'm just speaking from a perspective on the LA market. Hopefully it helps out, wish you nothing but success with the process.

Matt Pritchard · Answer

@Rohan J. I would clean up the front for sure. Get all the bushes out. Cut back the tree right up against the house, and then evaluate the bigger trees. You may be able to just lift them a bit and be fine. I have a great tree guy that can get all the small stuff out very cheap and then give you a bid on the bigger stuff. He's got a good eye for what trimming them up will do to your curb appeal. It would be a pretty cheap way to add some value.

Derrick E. · Answer

@Rohan J.Just knock out that wall to open up the kitchen a bit more. Other than that, just freshen it up like Matt Pritchard said.On the outside looks like main thing would be getting the vegetation off the house and a good pressure washing. Based on what you said about rent, and the area, have you considered combining a few of the units to make more 2 BR units and possibly go more all out with them? If a really nice 2BR would bring in more than or equal to all those 1 BRs then why not do that?Less tenants to worry about and manage, and would most likely get higher quality of applicants.

Derrick E. · Answer

Double Post!

Rohan J. · Answer

@Mo Gold - thanks man . i'm contemplating whether this needs a serious "design" touch-up, but it's great to be more knowledgeable about this resource now. never knew about how to tackle this design scope, so appreciate your thoughts@Matt Pritchard - really appreciate the advice. would you cut the trees outside?

Mo Gold · Answer

Rohan J. Do a thorough competitive design analysis to determine design scope and quality of sold properties as well as those currently on the market.