Remodel my home or invest into buying a rental property

[Chad Rupp]

I’m about to receive a large sum of money, enough to possibly lay down 20% on a rental property, but my wife and I would like to remodel our current home since we just bought it.

Any advice or strategies for how to do analysis of the right move? Remodel or buy a rental property?

Thanks!

[Chris Mason]

Originally posted by @Chad Rupp:

I’m about to receive a large sum of money, enough to possibly lay down 20% on a rental property, but my wife and I would like to remodel our current home since we just bought it.

Any advice or strategies for how to do analysis of the right move? Remodel or buy a rental property?

Thanks!

 Most dollars invested in a house will not yield a dollar for dollar return when you go to sell, meaning dumping $20k into a project may very well only increase value by $10k. When there's an exception to that, it usually involves kitchens or bathrooms, or a house that was so beat up no one could get a mortgage on it at all (eg, a flip) and someone had to pay cash. So don't go crazy on changing the entire floorplan IMO, just do what's necessary for you and your spouse to be happy in that home.