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

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 21 May 2025

⏱️ 37 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! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/rookie-564 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	Rookies, we know it is difficult to find cash flowing properties in this high interest rate
0:04.9	market. So one major tactic right now is to buy value add properties, but how do you know
0:11.5	how much to spend on the rehab? That's why I want to share with you this tactical episode by
0:16.6	Dave Meyer and Henry Washington. It gives game-changing advice on how to create real value in your
0:22.5	property so you can get higher runs and reliable tenants. Like, what are the best home makeovers
0:28.4	to do under 5K? And if you want to go big, what are the big 50K price tag renovations you
0:35.2	should be doing that are worth it? Let's find out in today's episode.
0:44.8	Hey everyone, Dave here. I'm the head of real estate investing at Bigger Pockets, where we teach you how to
0:49.6	achieve financial freedom through real estate. Today we're talking about ads, actions you can take as an investor to make your
0:57.0	property more valuable.
0:58.5	This can be as quick and easy as adding an accent wall, or you can do some moderate
1:03.5	renovations to add an extra bedroom, or you can scale all the way up to a full gut renovation.
1:10.5	Today, to help me talk about what value ads are actually worth it and will deliver an
1:15.9	ROI for you, I have Henry Washington with me.
1:19.1	Henry's been doing value ad projects basically since the start of his investing career.
1:23.7	So he's going to tell us which upgrades are actually worth it and how to identify which
1:28.6	properties are good candidates for adding value before you actually go and buy them.
1:33.9	Henry is also going to tell us one of the conventional much-talked about value-ad ideas that's
1:38.8	actually not worth it and one that he's stopped using on his own deals. So make sure to stick
1:43.9	around to hear that.
1:45.2	Henry, what's up, man? What's up, buddy? This is in my wheelhouse. I'm excited to talk about it.
1:50.2	Have you always been a value ad investor? Absolutely.
	...

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