Investing in a duplex is one of the best ways to get your foot on the property ladder, and one of the most common choices for a first investment property: You wind up with a home for yourself, and a source of rental income. At Fine Home Contracting, we understand the nuances of venturing into your first investment property, as it’s how we got our start almost twenty years ago: Renovating a few owner-occupied duplexes.

Investment properties require a niche set of skills: Walking into an investment property with the same tools, contractors, and materials as you’d use in your own home can actually waste money and lower your return on investment. Instead you need knowledge and resources specific to investment properties, and a team at your side that knows the ins and outs of maximizing your investment. In this guide, we’ll dive into the details of maintaining your investment property to ensure its value, appeal, and returns keep on increasing.

Rental Unit Kitchens

There’s a reason we call the kitchen the heart of a home: It’s the centerpiece of a properly designed floorplan, and one of the largest factors in how alluring your unit is. At Fine Home, we advocate for rentals to include kitchens that are functional, aesthetically pleasing, and budgeted to match the expected return of the unit. Over-renovating can result in a higher rent than is appropriate for your market, which can hurt you in the long run.

Kitchens are also one of the most important rooms in the home for maintenance, as plumbing and appliances are common points of failure that can cause damage. Here’s our top tips for keeping your rental unit’s kitchen in shape:

Renovation Tips

If you’re renovating the kitchen in your investment property or duplex, there are a few important things to keep in mind. The ideal kitchen design is functionally sound and aesthetically pleasing, but also stays under your renovation budget and makes the rental fit for the price-point you’re looking to list it at. Here’s a few cost-saving tips for kitchens in rentals:

  • Strategic Appliance Updates: Instead of splurging on a complete set of brand-new appliances, consider strategically updating key items. Focus on high-impact pieces like the refrigerator or stove, while opting for budget-friendly options for the rest. This not only gives the kitchen a modern feel but also keeps costs manageable.

  • Cosmetic Enhancements: Sometimes, a fresh coat of paint and updated hardware can work wonders. Consider repainting cabinets in a contemporary color and replacing old handles or knobs with more modern designs. These cosmetic enhancements can significantly transform the kitchen’s look without a hefty price tag.

  • Refurbished or Pre-Owned Finds: Embrace the charm of refurbished or pre-owned appliances and fixtures. Hunt for gently used items that align with your vision for the kitchen. This sustainable approach not only saves money but also adds character to the space.

  • DIY Friendly Upgrades: Explore do-it-yourself (DIY) projects for certain aspects of the renovation. Simple tasks like installing a backsplash or refinishing cabinets can be tackled with some research and effort. By taking on these projects yourself, you cut down on labor costs, making the renovation more budget-friendly. Be wary of projects that may require a permit you’re unable to pull yourself. 

  • Focus on Essential Upgrades: Identify and prioritize essential upgrades that provide the most value. Instead of overhauling the entire kitchen, focus on areas that directly impact functionality and aesthetics. This targeted approach allows you to allocate your budget where it matters most.

For more tips on renovating kitchens, see the kitchens section of our blog.

Bathrooms in Investment Properties

Maintenance

The value of a bathroom is easy to understate in a rental: One that is unsightly, dated, or especially dirty, can scare away an otherwise qualified and interested tenant very quickly. Likewise, without proper maintenance, bathrooms tend to be one of the largest sources of damage to a home, mainly due to plumbing issues. Here’s our top tips for regular maintenance for your rental units’ bathrooms:

Renovation Tips

Renovating bathrooms can be extremely expensive, and oftentimes an entirely new bathroom can seem out of reach if you’re looking to keep the rent on your unit affordable. Here’s a few tips we’ve found to keep remodeling costs down for your rental.

  • Tile Tactics: Consider cost-effective tile options to achieve a fresh and modern look without breaking the bank. Subway tiles, for example, are not only trendy but also budget-friendly. Limiting the use of pricier tiles to focal points, like the shower or backsplash, can further optimize your budget.

  • Fixture Facelift: Instead of replacing all bathroom fixtures, focus on updating key elements. Swapping out faucets, showerheads, and cabinet hardware for more contemporary designs can make a significant impact without a significant cost. Look for affordable yet stylish options to refresh the space.

  • Creative Cabinetry: Explore creative solutions for bathroom storage. Instead of investing in brand-new cabinets, consider repainting or refinishing existing ones. Additionally, open shelving can be a budget-friendly alternative, providing both functionality and a modern aesthetic.

  • Refurbished Finds: Embrace the charm of refurbished or second-hand items. Hunt for pre-owned mirrors, vanities, or light fixtures that align with your vision for the bathroom. This not only adds character to the space but also reduces the overall cost of your renovation.

  • Strategic Lighting: Enhance the ambiance of your bathroom with strategic lighting updates. Instead of a complete overhaul, focus on updating light fixtures to achieve a more modern and inviting atmosphere. Affordable yet stylish lighting options are readily available, making this a budget-friendly choice.

For more tips on renovating bathrooms, see the bathrooms section of our blog.

By incorporating these budget-conscious tips, you can elevate your duplex’s bathroom without straining your financial resources. Proper maintenance will ensure lower costs and longer lifespan for the fixtures and materials in your rental as well. A well-executed renovation doesn’t have to come with a high price tag – it’s about making strategic choices that maximize both style and affordability.

The FHA 203(k): Real Estate Investor’s Best Kept Secret

If your duplex needs a facelift, consider orchestrating the renovation process with the FHA 203(k) program. This HUD sponsored program allows you to finance both the purchase and rehabilitation of your duplex with a single loan. While FHA203ks are limited to owner occupied properties, those looking to start their investment portfolio with a property they plan to live in anyway only stand to benefit from the program. For properties that may seem slightly out of reach due to necessary repairs, or otherwise perfect properties with some glaring structural issues, this program can bridge the gap into making the investment worthwhile.

Property Management: The Art of Long-Term Success

Ensuring your property becomes a worthwhile investment is more complicated than picking, buying, and renovating correctly: Consistent property management is key to keeping your properties maintained, occupied, and bringing in profits. Finding the right property manager, or the correct tools to enable yourself to manage your own portfolio is key. Here’s a few of our top tips for those looking to be their own property manager:

By adopting a proactive management approach, you’re not just maintaining your property; you’re laying the groundwork for sustained success and profitability.

Connect with Fine Home Contracting

Navigating the world of duplex ownership is a collaborative effort, and at Fine Home Contracting, we’re here to be your guide. Whether you seek advice on property maintenance or wish to discuss potential renovations, our dedicated team is ready to assist. Our network of lenders, inspectors, realtors, and vendors have worked with us for years to high results, and we’re very happy to recommend the best fit for your needs: Whether it’s finding the ideal rental, renovating it to perfection, or acting as your consultant as you make your way up the investment ladder. Contact us to schedule a consultation and take the first step toward maximizing your duplex investment.

In conclusion, owning a duplex is a dynamic venture that requires meticulous attention and strategic planning. With careful maintenance, strategic renovations, and proactive property management, your duplex can evolve into a thriving investment. Trust Fine Home Contracting to be your partner in this journey, ensuring your duplex remains a source of pride and income for years to come.

FAQs about Investment Properties

How can I enhance the curb appeal of my multi-family property without overspending?2023-11-02T16:13:49+00:00

Improving curb appeal on a budget can be achieved through landscaping, fresh paint, and small exterior updates, which typically cost between $1,000 to $5,000.

How much does it cost to renovate a kitchen in a multi-family property or rental in CT?2023-11-02T16:13:02+00:00

The cost of renovating a kitchen in CT can vary widely, but budget-friendly options often start at around $15,000, with more extensive upgrades averaging between $20,000 to $35,000.

Can I use an FHA 203k loan to buy a duplex in need of major repairs?2023-10-27T13:33:33+00:00

Yes, an FHA 203k loan allows you to purchase and renovate a duplex in need of significant repairs.

What is the average timeline for renovating a duplex with an FHA 203k loan?2023-10-27T13:33:14+00:00

The renovation timeline can vary, but it typically takes three to six months, depending on the extent of the renovations.

How do I renovate a rental to attract better tenants?2023-10-27T13:29:07+00:00

Remodeling an investment unit is a great way to attract higher-paying tenants: Current trends include open floor plans, energy-efficient features, and modern, durable finishes for both units.

Published On: November 9th, 2023 / Categories: Uncategorized /

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