Key Takeaways
- Overimprovement occurs when renovation spending exceeds the incremental value or rent increase it generates.
- Every renovation dollar must be justified by a measurable rent increase or resale value increase.
- Research the local ceiling for rents and values — renovate to approach, not exceed, the ceiling.
- Highest-ROI improvements: paint, flooring, kitchen/bath updates, and curb appeal.
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Test Your Knowledge
1.What is overimprovement in residential investing?
2.What flooring type is the current cost-effective standard for rental renovations?
3.Which renovation items deliver the highest return per dollar spent?