We have a ton of equity in a 3 bed/3 bath rental condo in CA. What is the right amount of work/updates/money to put into the unit to sell it so we can invest the equity into a better income producing property. The condo is in a good neighborhood with highly ranked schools (state & nationally). Average days on market for the last 4 months of sales is 56 days with units selling within 1% of the asking price.
10 years ago, before I took over the property, the huge loft/study upstairs was converted into a 3rd bedroom & bathroom. My handy man says the kitchen will need to be redone (lots of grease, broken counter tiles), the Pergo floorboards are separating, & 2 of the 3 bathrooms have never been updated besides needed repairs. Same tenants have been there for almost 8 years.
What updates should we consider that will give us the best return on our investment? With having such long term tenants we know we will need to do repairs/updating. The kitchens in the complex are tiny so that is usually the one area everyone updates.
I am thinking:
Kitchen: granite counters, clean or paint cabinets, new flooring, new fixtures
Bathrooms: new fixtures, new flooring
Living/dining rooms: new laminate wood flooring
Bedrooms: new carpeting
Paint throughout
Would I be putting too much into the unit so that I won’t get my money out when I sell it? Or are these updates reasonable to gain a higher sales price? I have done a comparison of prices & features of similar units that were recently sold and units currently for sale in the complex. Most units have partially or completely redone the kitchens & flooring in the living/dining/kitchen areas.
