High-ROI “Value-Add” Renovations for Any Budget ($5K - $50K+)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 26 February 2025

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

Which rental renovations give you the biggest bang for your buck, turning a few thousand dollars of materials and labor into hundreds of more dollars of rent per month and tens of thousands more in home value? Today, we’re going through each tier of rental renovations: easy and cheap ($5,000 or under), moderately challenging and expensive ($25,000 - $50,000), and hard/pro-level ($50,000+). This will give you a roadmap of high-ROI rental renovations you can make right now to increase your property’s value and rent. Why are these rental renovations (AKA value-add) so important right now? Because with so many investors and homebuyers sitting out of the market, you can take your pick of homes with overlooked potential and turn them into high-value investment properties. This not only makes tenants happier due to new renovations and upgrades but also gets you higher rents and wealth-building equity to boot. We’ll start with some easy ones—painting, tiling, adding backsplashes, etc.—and work our way up to the pro-level renovations like adding square footage and turning a single-family home into a multifamily. Based on your experience, you can go either route, but both have enormous potential to turn your initial investment into a killer real estate deal. In This Episode We Cover: How to increase your property’s value (and rents) with high-ROI rental renovations The easiest (and cheapest) upgrades to make that take little time What to look for when buying a home for “value-add” and signs of money-making potential The one appliance you should NEVER include in your rental property The easy bathroom conversion that will massively boost your home’s equity Pro-level rental renovations that could make you six-figures And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube Apply to Be a Podcast Guest Invest in High-ROI Turnkey Rentals with Rent to Retirement or Txt REI to 33777 Grab Henry’s New Book, “Real Estate Deal Maker” Find an Investor-Friendly Agent in Your Area The One Renovation Guaranteed to Increase ROI—No, It’s Not the Kitchen or Bathroom Connect with Henry Connect with Dave (00:00) Intro (03:53) $5,000 (or Less) Renovations (12:06) Best Homes for Value-Add (17:20) Worthless Renovations (18:28) $25K - $50K Renovations (20:21) Kitchen Renovation Worth It? (24:33) BIG Renovations ($50K+) (29:37) High Risk, High Reward Renovations Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1088 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I want to buy a rental property, but the numbers just don't seem to work.
0:05.3	But what if I could actually change the numbers?
0:08.3	It's actually possible.
0:09.6	You do have options.
0:11.1	There are things you can do right now to increase your property's value,
0:15.2	generate higher rents, and turn bad investments into good ones.
0:18.4	Keep listening to find out how.
0:29.6	Hey everyone, Dave here. I'm the head of real estate investing at Bigger Pockets,
0:33.1	where we teach you how to achieve financial freedom through real estate.
0:38.2	Today, we're talking about value at actions you can take as an investor to make your property more valuable.
0:39.4	This can be as quick and easy as adding an accent wall, or you can do some moderate
0:44.4	renovations to add an extra bedrooms, or you can scale all the way up to a full gut renovation.
0:51.4	Today, to help me talk about what value ads are actually worth it and will
0:56.0	deliver an ROI for you, I have Henry Washington with me. Henry's been doing value ad projects
1:02.3	basically since the start of his investing career. So he's going to tell us which upgrades are
1:07.2	actually worth it and how to identify which properties are good candidates for adding value
1:12.6	before you actually go and buy them. Henry is also going to tell us one of the conventional
1:17.6	much-talked-about value-ad ideas that's actually not worth it and one that he's stopped using
1:22.7	on his own deals. So make sure to stick around to hear that. Henry, what's up, man?
1:27.2	What's up, buddy? This is in my wheelhouse. I'm excited to stick around to hear that. Henry, what's up, man? What's up, buddy?
1:28.0	This is in my wheelhouse. I'm excited to talk about it. Have you always been a value ad investor?
1:35.4	Absolutely. Like your first deal, were you already doing renovations and adding value? Yeah, my first deal,
	...

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