All Forum Posts by: Dan Hudson

You can get different answers based on what 'value' means to you and that changes over time.  

1. Value as in increasing the selling price of the prop - but you are not selling for at least a decade.  Answer: Fresh flooring, paint, bath fixtures, updated kitchen.  And the lights  and switch plates like mentioned above.  Cleaned up landscaping.  At least 2 baths. Finished basement. New doors and doorjambs 

2. Increasing your pleasure while living in it?  Great kitchen. Nice lighting. Outdoor entertainment upgrades, new doorknobs. new switches, outlets and faceplates.

3. Increasing the rent.  Fresh paint, flooring, add a bedroom - this can be converting a room so that it meets basic bedroom code - window, closet, door.
4. Increasing the speed that you can rent it?  Get it super clean, no smells, new lights, switch and outlet face plates.

IMHO, it isn't real until you see money or signature promise for money.  Is it possible she is showing your prospective tenant other properties that pay 73%?  I do not want to cast doubt on your many year relationship, but why would she wait?  I suppose she doesn't get paid until she collects signature and money.

Things to consider:

• How long will the conversion take before you get first rent?  Can you wait?
• Someday in the future you will sell it.  If it were finished now, who will buy it?  
• Sometimes you don't want to tie up a large portion of your treasure in one property.  If you need money in the future, you have to sell the whole big investment or refi if you can.
• You can change the building, but you can't change the location. Be sure you are in the path of progress. Else, if the neighborhood goes and you have a large percentage-wise investment in a bad place... oops. (My starter SFH neighborhood became 'the hood' and I lost a lot. I decided to only invest in places I would actually live - no more problems.)