5 Renovations That Are A Waste Of Money in a Rental Property

Kris Krohn here with Limitless wealth TV and today, I’m talking about the five renovations that are a total waste.


Kris Krohn here with Limitless wealth TV
and today, I’m talking about the five renovations that are a total waste of
money. Alright, we are back and today, we are
talking about five renovations you just hands down shouldn’t do. I want
to do a little shout out to my buddy Clayton Morris with this channel,
Morris Invest, he’s giving you three great ideas that I think we want to
cover first and then we’re going to throw two bonuses on top of it. – Absolutely. The
first idea, the first thing that you don’t ever want to do is to switch out
your kitchen countertops. Look, now I know, everyone says, “Hey, but I want that hard
stone, I want the granite or the marble or the whatever” it just trust me, this
is one of those things where you will never recuperate your money. – You know
because when you’re dealing with single-family homes, for example, real
estate below the median, this is what basic average everyday Americans are
trying to get into and so you know when you’re talking about those basic level
homes, they’re not looking for granite so you got to make sure that you take off
your goggles, your consumer goggles and you put on your investor goggles and you
think what’s best for the investment as opposed to what’s best for what I would
want because you’re not going to live here,
this is an investment property. – Absolutely. Second one, bedrooms. Don’t
combine or remove a bedroom, okay. This is important because so often, when we’re
getting into homes, single-family residences, we’re talking about here, you
want to make sure that you have the right amount of bedrooms for the right
amount of square footage and combining that to make one big bedroom that means
you lose out on a bedroom and although you may like that,
chances are, the rest of the world that’s wanting to buy your home isn’t going to
want that. – It’s just a lot of extra money to put into the house as well and more
money always means more time. I will tell you however, I did, I have had success in
adding an extra bedroom, I only look at doing that however when you only have
two bedrooms in a house. Going from a 2 to a 3 bedroom and you’ll get less of a
value going from 3 to 4 over 4, who cares, but if you’re just sitting at 2, there’s
a world of a difference that you can make in the price of the home by going
from number 2 to number 3 but that’s not all I’d say on that. – Absolutely. The
third thing from Morris invest what he says is, bathrooms.
Don’t overdo the bathroom. – Steven, I need heated tile. I need tile floor to
ceiling, I need on the ceiling. I need a sauna right over the
toilet for some reason that I understand, and a bidet. – How do you do that?
– I don’t get the bidet thing – Well I know plenty of people
that love that but again, that is.. – You do? – Well I know one person that lives and
dies by a bidet. – Is it you? – No, it’s not me. No. But the thing is, all those are small, not small, all those are upgrades that are
very specific, they’re very specific to a person’s taste, any time when you’re
doing an upgrade where you feel like this is something that I would just love
or you know that, someone specific may love a specific situation. Just stay
away from it. You want to stay vanilla, you want to
stay broad, you want to appeal to the very most people and again, we’re talking
about these investment-grade real estate properties, we’re talking about 97% of
the populace, not the 3% who liked the gold
fixtures and the huge upgrades and the granite this and that, you know,
everything like that. – So you know, this brings us to number four that we’re
adding to the table today.We want to talk about flooring. Now we’re right now
standing on, this is acacia flooring. I remember I was in Africa when I saw acacia tress and I’m like, well I can see why that’s probably really expensive to
get here, acacia is a fine wood on the hardness scale, I think it’s like a nine
out of ten, it’s very hard to get and it’s very expensive. The reality is when
you’re dealing with an investment property, you don’t need acacia flooring,
you don’t need walnut, you don’t need Brazilian, you don’t need a hand scraped.
What you need is really basic flooring and often, you’re going to get your basic
laminate, that’s going to do the job, they’ve got the stickers that you can put down,
very basic and elemental carpet that you can put down and if you’re going to put
down a hard surface like a tile, then stick with the really cheap tile,
– They don’t need travertine, right? – Well, people always has a special under
70¢ or their 99¢ tile pieces, go get a little pallet of that if you
want to take the extra time and effort and energy and do that but you know what?
Linoleum and carpet, they go down a whole lot faster. If you’re going to do tile,
stay away from the two three and four and five dollar or a foot stuff and
stick with the basic dollar of this stuff. – Completely agree. Now the fifth
thing, the fifth thing that you don’t want to necessarily get crazy on is
cabinets. Now cabinets are found all throughout the house, you’ve got your
kitchen cabinets, you’ve got your bathroom cabinets, you’ve got maybe your
office cabinetry, right. Cabinets are one things that could one of those things
that can cost you an arm and a leg, – It costs a lot of money.
– It can take away all of your profits in a real estate investment property so
before you go and you start yanking cabinets out of the walls and get all
excited about how it’s going to look, just do yourself a favor, ask yourself these
questions, can I resurface these things? Can I sand and repaint
these cabinets? Is there something else that I can do? Can I reuse some cabinets
from an old project into this project maybe? Any kind of, anywhere where you
can reuse, fix up, repaint, that’s going to really stretch your dollar in the
end. – And this is what you want to write down, lacquer, right. I mean, get a nice
lacquer finish, a nice oil-based paint, get the sprayer and put a nice thin coat
of that, go all white or something basic like that and you can take
hideous-looking cabinets, please remove the fixtures first right, the
handles and then just give it a nice paint down and then go ahead and add
them again and you know what? They may not look entirely new but they’re going to
look ten times better and they’re going to save you thousands of dollars of redoing
cabinets.- Absolutely. – Alright, so these are five of our hacks that we wanted to
add to the table today on this idea of, what should you not be renovating that
are going to cost you an arm and a leg and too much and ultimately take your
profitability in a project and shrink it down to put you at risk. So don’t do that
as an investor. I think Steven said it best when it came down to your goggles,
make sure you are wearing your investor goggles, you got to be looking at the
project a little bit more from a distance instead of what you would per
say want and do something that works for what the average price of that home is
in the area and what’s appropriate for that home in that area. If you have some
experience in real estate and have other ideas that you also think are a waste of
time, please comment below and share them with the rest of our youtube friends so
that we can help each other making sure that we’re making wise decisions in our
renovation game. Make sure that you subscribe, hit the bell on your way out
and look back tomorrow, I’ve got a new video coming for you.

8 thoughts on “5 Renovations That Are A Waste Of Money in a Rental Property”

  1. I have a 4 bedroom 2 bath rental in Santa Cruz Co. California (lucky me) My next renovation is either going to be adding square footage to the home by bumping out one of the bedrooms into a master bedroom, or, adding a third full bath. Which one do you think would be the better investment? By the way, I'm a contractor, so I get it all done for the cost of the material. Thanks for these videos man! Super helpful!

  2. Don't over improve! Just bought a rental and its not common for high end countertops. So I left the standard for the neighborhood in there.

  3. can you do a 5 that arent a waste of money? and so removing a bedroom is bad but is building an addition on the house or another bedroom good?

  4. LoooooL. Please change the name of this show to "The Laurel & Hardy Show". LoooL!!!
    Way to go! Keep making more videos. Plz. LoL. Together.

    LoooL. Pard my imagination plz.

    Looolll.

    Does anyone remember what happened when Laurel & Hardy decided to build a house? Why do I keep having visions of that each time I see these two together?

  5. A note on cabinets: IF you have storage, there are often entire kitchens available on CraigsList. I've bought four kitchens from luxury builds that were hardly or never used. Each of the kitchens I removed included appliances and countertops. There were enough units to redo 2–3 condo kitchens. Fortunately, I have a barn-sized garage. Also, these deals are from renovations, so be prepared to JUMP fast. Deal hard and keep calling. Rarely do people want to hang onto cabinets that have been uninstalled, if they have pockets deep enough to redo a newer kitchen "just because" it's what they want.

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