BiggerPockets Real Estate Podcast

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

Feb 26, 2025

Henry Washington, a seasoned real estate investor with expertise in value-add projects, shares his insights on renovations that maximize ROI. He explores affordable ($5K or under) to high-end ($50K+) upgrades to enhance property value and rental income. Topics include clever strategies for transforming underused spaces, the debate around kitchen renovations, and the importance of converting laundry rooms into bathrooms. Washington emphasizes the current market's potential, urging investors to seize overlooked properties for profitable renovations.

40:33

Episode guests

Henry Washington

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Episode notes

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Quick takeaways

Investors can greatly enhance rental income and property value by implementing simple renovations, such as upgrading fixtures or adding accent walls.

Identifying properties with potential for value-add, like those with unused space or low bedroom counts, can significantly increase investment returns.

Deep dives

Understanding Value-Add Strategies

Value-add strategies in real estate involve making improvements to properties to increase their value and generate higher rental income. Simple enhancements like adding an accent wall or upgrading fixtures can significantly enhance perceived value without extensive renovations. These improvements can be measured directly, such as converting spaces into additional bedrooms or bathrooms, thus increasing a property's usability and market appeal. Investors should focus on identifying properties that allow for such upgrades, which can transform underperforming investments into profitable assets.

Intro

2min

Maximizing Property Value Through Smart Renovations

10min

Essential Checklist for Property Shopping and Value-Add Renovations

3min

Maximizing Property Value Through Strategic Renovations

7min

Strategic Bathroom Conversions and the Debate on Kitchen Renovations

6min

Smart Renovation Strategies

13min

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!

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