We should formally close on our latest investment property within the next week. We’re trying to move as quickly as possible, but as we’ve come to realize over the last several months the process doesn’t always go smoothly. There are a few liens on the property that need to be sorted out, but we’re hopeful they will be squared away.
In the interest of being ready to begin rehab on Day 1, we’re meeting with our contractor this weekend to discuss what work needs to be done. Aside from paint, a new garage, waterproofing and other mundane items, the house is in need of an updated kitchen.
Could I keep the existing cabinets and rent the property as is? Yeah, most likely. However, my mentor has showed me a fully renovated kitchen can drive a 10-15% increase in rents — at that rate, the cabinets will pay for themselves in less than a year. Aside from the monetary benefits, such renovations attract a more quality tenant, support higher appraised values and, in general, are a positive for the community.
We’ll likely tinker around with the layout to better accommodate appliances, but for now we’re trying to decide on which style to use. Our options are below – what are your thoughts? I’m leaning towards the first option, but with a different flooring / backsplash combination.