Rental Rehab calculations

[Peter Bardou]

Hey everyone!

I am getting ready to rehab a kitchen and bathroom in a 2 bed 1 bath unit. I am doing all of the work myself. The estimated budget for the rehab is as follows:

The rent increase will be $200 on the unit, going from $725 to $925 or a 27.5% increase. I absolutely feel like this is a no brainer because i am doing the work. IF, i were to pay contractors to complete the work, i would add at least 50% to that total if not more....IS IT WORTH THE REHAB? as a DIY is it worth the rehab in terms of ROI

I can currently bring the unit up to $800/month with a turnover and zero rehab.....THOUGHTS?

plumbing and electric is being done by family members for cost of materials :-)

[Jill F.]

Hi peter, You should be able to beat your estimates on everything except possibly backsplash tile-- and it makes such a big statement it's great place to splurge. We have been using an adhesive product from lowes called musclebound instead of thinset. We had it installed on the face of a bar in a retail store for 2 years and it really held up. It saves tons of tearout and install time-- it goes right over existing backsplash. We have been getting great deals on vent hoods on ebay. Is that stove on an outside wall? If you can self install easily, ducted hoods work so much better. Personally I'd skip the ceiling fan and get an 18" 2000-2500 lumen 4000k led light to save on long-term maintenance and provide better kitchen lighting $50 on amazon. If you go with a vinyl Click plank you can come in less than $2/ft on flooring.home depot or floorstoyourhome.com I have been adding restaurant style sprayer faucets off Amazon for about $60 and under cabinet lighting $40 to make a statement. Tenants love them. Havefun. I love doing pretty kitchens. Pics of new cabinets? I can't get the@ to work from my tablet :(