I have a quadruplex under contract and am building a bid to confirm my numbers. I plan to cash-out refi in about 1 year to pull out my cash. I am considering using contact paper on the linoleum countertops to mimic granite. This is a Class C (maybe C-) property. From an appraisal perspective, would a refi appraiser (1) think this adds any value or (2) ever think that the countertop was actually granite? (I will also make other upgrades, like installing LVP flooring).
Unlikely on earning any additional value for the countertops. Appraisers simply ask themselves if the property condition is up to par with comps in the area and this is a question that harms you more than it helps you. If yes - there's unlikely to be any adjustments. If no - you may see an adjustment to lower the value of your house to reconcile with the comps. So don't over renovate.
Re: thinking the countertop was actually granite, unlikely. But even so, unlikely to increase your value on a refinance (see above). On a flip maybe because a buyer might pay more.
For a refi, make a decision on durability and cost for the counter tops. Especially if this is a long term hold ...
Unlikely on earning any additional value for the countertops. Appraisers simply ask themselves if the property condition is up to par with comps in the area and this is a question that harms you more than it helps you. If yes - there's unlikely to be any adjustments. If no - you may see an adjustment to lower the value of your house to reconcile with the comps. So don't over renovate.
Re: thinking the countertop was actually granite, unlikely. But even so, unlikely to increase your value on a refinance (see above). On a flip maybe because a buyer might pay more.
For a refi, make a decision on durability and cost for the counter tops. Especially if this is a long term hold ...
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
4y
@Scott Sloan yeah, your value comes from what your comparable properties show. So if all of your comps have granite....and yours doesn't, you may not get the value that your comps show. So if all of your comps show entry level renovations, or entry level materials....then you also don't want to use granite because now you are "over improving" your property and you may not get the value that you want. So base your numbers on what your comparable properties show - in all cases. Meaning, if none of the comps have a finished basement - don't finish your basement. If all of the comps have central HVAC, then you need have one too. Same with counters. Keep it just like your comps and that will provide you with the best calculation on what your ARV will be. Hope all of that makes sense.
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
4y
I am about to form up and put some cement countertops in a couple of my class B/C rentals when a have tenant turnover.
Laminate goes to crap eventually. Granite is too pricey for the units. I don't think you can really mess up cement, you'd have to take a hammer to it. Stained, sealed and indestructible.