Upgrades in Rehab Rental in C class neigborhood

[Sean M.]

I purchased my first rental in a C class neighborhood. The house needs some rehab and I’d like opinion on:

- vinyl or stone tile in kitchen?

- add central air or replace window a/c?

- laminate countertop or quartz?

I am paying cash for the house and rehab, then will cashout refi when the home is rehabbed (giving me cash back for the next one). My lender, who is a flipper, said I should upgrade countertops and a/c so the appraisal comes back higher. He also said I could get more rent if I upgrade, which perhaps in a A-B class I could but is this true for a C class?

Would like your opinions. Thanks!

[Brooks Rembert]

Hi @Sean M., if it's a TRUE C class neighborhood and your plan is to hold it long term, personally, I would go with the vinyl floor and laminate countertops in the kitchen... and would probably upgrade to a mini split for A/C vs. a window unit.

There is such a thing as over-rehabbing a property in an area, so try to see what the nicer homes in the neighborhood have and either match those or come close without over doing it.