Renovations
Which renovations actually pay for themselves
February 10, 2026 · 7 min read
Renovations are where new investors lose the most money. Not because the work itself is hard, but because they pick the wrong projects, hire the wrong people, and scope without a clear ARV in mind.
The renovations that earn back
- Kitchens, but only to the level the comp set supports
- Bathrooms: clean, functional, neutral, never trendy
- Curb appeal: paint, landscaping, a clean front door
- Adding a legal bedroom where the layout allows
The ones that don't
Pools, high-end appliances in mid-tier markets, custom built-ins, and exotic finishes almost never come back at resale. They might make sense for a personal residence, but as an investor you are buying ARV, not aesthetics.
The 70% rule, used carefully
Buy at no more than 70% of ARV minus rehab. This is a starting point, not a law. In hot markets you may need to flex it. In slower markets, do not. The rule exists because something always goes sideways.
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