My friend Omar, 3-time BRRRR investor, licensed general contractor and all-around awesome dude put together a list of renovation MUSTS for a rental property.
If you’re considering getting into the game through BRRRRs (Buy, Rehab, Rent, Refinance) or want to house hack a single-family home in an unofficial duplex then read on.
- Remodel for an unofficial duplex – this will maximize your rental income and give you the most flexibility. This means 2 kitchens, 2 living areas and 2 washer/dryers.
- Update your electrical service to a 200 AMP – you’ll need it for that basement kitchen and extra washer dryer. Neglecting this from the start will cause you trouble down the road.
- Install a high efficiency furnace and water heater.
- Put sewer clean outs – you know it’s gonna happen, renters are notorious for clogging drains.
- Make it a smart home – Ring doorbell, Nest thermostat and Ultraloq locks – this gives you maximum control on the property.
- Install or replace showers with shower pans – no tile or tubs!
- Vinyl flooring. No carpet, ever.
- Sound “proof” your walls and ceilings with cavity insulation. I’ve done it. It’s a game changer.
- Safety first – install egress windows, smoke and CO detectors to code.
His other tips for renovation projects are:
- Work with contractors who are also investors – they’ll understand what you’re trying to accomplish with the project.
- Always design first – don’t just start ripping down walls.
- Plan your scope of work and stick to it. That’s how you’re going to stay on time and on budget.
- If you have a shoddy roof – choose the lowest deductible possible and pray for a hailstorm.
- Proformas are not perfect – run your numbers conservatively.
Oh also, Omar is doing all his BRRRRs in Colorado and cash flowing beautifully. Want to knock down some walls on a property in Denver? Reach out! We’d love to show you some properties to BRRRR.