First Investment - Best Value Add Opportunities?

[Cole Agner]

Hi everybody,

A few months ago, I just purchased my first property (yay me), which I'm working to house-hack at the moment. One thing I wanted to do was to get some advice on opportunities that would add the most value to the home as I'll be looking to refinance after making a few updates.

Since I'm a little unfamiliar with what would give me the most "bang for my buck", I figured it'd be worth it to share my Zillow rental post, give my thoughts to you guys, and see what you all come up with since I'm a day one newbie here...

https://www.zillow.com/homedetails/698-Bridal-Ave-Jacksonville-FL-32205/316819570_zpid/?view=public
It's a 3 bed 2 bath house, almost 100 years old, and the seller made a bunch of updates to the house (fixed roofing, foundation, re-ran electrical wiring, redid flooring, and interior paint) prior to me moving in.

So far, I've added a dishwasher to the place, and here are my thoughts as far as other "value adds" go, but I don't want to invest the money if you guys and gals don't think there's much opportunity for a return on it... I've got about $10k I'm willing to spend, and here's what I've come up with as far as updates go:

- Add shelving for grocery storage - there's very little today

- Rehab the front porch (you can feel the plywood sink in places as you walk over it)

- Repaint the outside of the house (paint is peeling)

- Add a fence for the back yard

- Add a back door (there's only one entrance/exit to the house)
- Pave the driveway on both sides of the tree out front
- Add exterior lights to the side and back of house

- Update kitchen counters (granite?) & new stove

Again, I'm sure some of you are screaming at your computer at this point, but I'm open to criticism and what you think would be the best value adds.

Thank you!

[Ko Kashiwagi]

Hi Cole,

Congratulations on the purchase! I would start with the comparables in the area. I presume you are trying to "add value" in terms of increasing cash flow, not in terms of increasing the value of the home (for you to later cash out refinance)?

The first question would be if there is value to be added (as it seems like your property is already updated and you've given good amenities) - are there comparables that are collecting higher rent and if so what are they doing differently? I think there is a diminishing marginal benefit to upgrades you can do increase cash flow here given most things in your home is upgraded. If you think you can rent this out as a short term rental, then that is another story and I think you're 10k could be well spent to increase cash flow.

[Ken Holifield]

For $750/mo, this already looks great!  Don't overdo it.  You would be better off using that money toward acquiring another property.  Good luck!

[Jake Baker]

@Cole Agner

Congrats on the purchase! I am also in the Jax market. 

Bathrooms and Kitchen remodeling will add the most value for an appraisal. Perhaps you could paint the kitchen cabinets and add granite. 

[Alana Reynolds]

Talk to a local appraiser and ask what upgrades add the most value in your zip code.  

[Vincent Keele]

Congratulations Cole!!!!

[Griffin Malcolm]

It looks really nice already. They're already taken care of the major things, so I think your money would be better spent on property #2. Black cabinet hardware and changing to a black sink to match the other appliances would look nice though and wouldn't cost much

[Mark Fries]

I think all your ideas sound great. They don't cost a lot of money and they add tremendous value!