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The 3 Renovations That Are a Waste of Money | Investing for Beginners - YouTube
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don't waste your money with these three
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rental property upgrade mistakes that's
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today's video let's dive in hey there
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I'm Clayton Morris the founder of Morris
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invest and today we're going to talk
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about three mistakes three areas that I
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see a lot of rental landlords when
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they're rehabbing a home they waste
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their money on some upgrades that they
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think they need to put in the property
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but simply don't convert when it comes
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to return on investment these are tried
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and true a lot of people think that
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pumping money into certain areas of the
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home will get a higher rent will get a
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higher equity position in the house and
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it simply doesn't happen and the same is
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true for renovating your house if you
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live in it and you're looking to
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increase the equity so let's dive into
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it let's go to the first spot in the
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house and the first one up is the
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kitchen countertops I see a lot of
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people wasting money on kitchen
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countertops in their rental properties
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and you simply don't need to go high-end
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granite countertops or quartz
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countertops or corian countertops in a
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c-class neighborhood in a b-class
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neighborhood don't over upgrade for the
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neighborhood and really nice looking for
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light formica countertops for all that
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you need to do it's what a tenant is
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expecting in the property
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and it's going to be too costly to
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though put money at something that you
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don't need to do like granite
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countertops and a property the return on
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investment simply isn't there and
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they're really inexpensive to get a nice
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Formica countertop that can actually
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look like granite
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I've seen some nice-looking formica
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countertops it's almost hard to tell
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from the eye that it's Formica and not
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and not granted or cornea so you don't
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need to go high-end with your
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countertops don't do it it's a waste of
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money and it will not increase your
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return on investment okay let's go to
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the second spot in the house the
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bedrooms second spot in the house if you
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have a three bedroom one bath house a
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lot of homeowners landlords think what
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if I knocked out a wall and created a
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master suite for my to my tens so that
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will have two bedrooms instead of three
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and they'll have a big bedroom and
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they'll have sort of like a master suite
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we'll knock down the wall out of their
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own maybe private entranceway to the
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bathroom and that's going to really
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increase my chances of getting it rented
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and it's also going to increase my
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equity no don't do it do not do it
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bedrooms count when it comes to rental
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properties and getting rid of a bedroom
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in order to create a master suite is a
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huge mistake I've seen people do it it
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is a bad move stick with the floor plan
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that you've got three bedroom one bath
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keep it that way don't go turning it
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into a two bedroom
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create a master suite okay let me take
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you down the hall and show you the next
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big mistake the people are spending
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money on in their rental properties
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let's go and the third way to waste a
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ton of money in a rental property is to
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over upgrade the bathroom look you do
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not need to put in a nice big tub jets
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or anything like that or or you know put
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in multiple sinks in your rental
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property order a walk-in shower or
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anything like that that is not something
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you need to do in your rental property
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it is wasting money and this is the
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number one way that people waste money
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on a rental property or in their own
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property putting money into a bathroom
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does not yield the type of return on
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investment that people think that it
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does so you want to avoid over upgrading
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a bathroom instead you should the
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bathroom should look like this here
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keep it simple like this bathroom simple
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tub simple tub simple shower walls tile
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floor or you can put vinyl down no big
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deal and a simple
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simple vanity with with a mirror that's
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all you need to do in a bathroom to make
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sure that you're really getting the bang
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for your buck on a rental property don't
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go crazy so let's recap
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do not over upgrade the cat have the
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countertops in your property and spend
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money where you don't need to number two
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don't knock down walls and remove
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bedrooms in order to make a master suite
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and number three don't waste your money
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on over upgrading bathrooms huge mistake
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keep it simple keep it cash flowing
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that's the power of rental real estate
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please subscribe to our channel everyone
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we've got so many great videos on here
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where we walk you through all different
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levels of real estate investing if
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you're a brand new be great click on the
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start here playlist we've got a start
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here playlist kind of walks you through
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the thought process getting your head
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wrapped around creating cash flow and
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rental real estate and also subscribe to
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our channel we love to have you here
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subscribing because we publish videos
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weekly right here on the Morrison vest
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youtube channel thanks so much everyone
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we'll see you back here next time with
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another video
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here we are at 3289 Schofield this is
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one of our rehabs
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for the middle up right now so the whole
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