Most of my rental properties are 100 years old. The major operating systems (heat, wiring, etc.) have been updated, of course. And with some of them, I replaced cabinetry along with the initial rehab. This duplex had older wooden cabinets that had a few good years left in them. I had ceramic flooring and a new bath installed last year, and after a recent move-out it was time to update the kitchen.
I used stock, pre-finished oak cabinets from my local big box store, and one of the formica “grant lookalike” countertops they keep in stock. I think they look fabulous, and this place should rent quickly.
My investment goal 20 years ago was to buy and hold, for income and long-term investment. And with each improvement I make beyond the initial rehab, Im:
- Making my rental more attractive to potential tenants, thus drawing a better quality renter.
- Improving the value of the home itself, thus making it a more attractive purchase to a buyer, when it comes time to jump into my exit strategy.
So, every improvement I make, I keep these points in mind. Is it adding value in the eyes of my next tenant? Is it adding value down the road, when I decide to sell? If so, then go for it!