How Much Property Value Does Adding A Bathroom Add?

Read the transcript:

00:00
good morning everybody this is Joe light
00:03
sorry about the sunglass it's extremely
00:05
bright I am under here I have to keep a
00:07
lot I can't see handy to a property that
00:10
my wife and I we're partners own and I
00:15
wanted to talk real quickly about the
00:18
reason why I'm going is to check on the
00:19
progress of a half bathroom that we're
00:21
installing so I want to talk about the
00:23
value that half bathroom would add to to
00:26
a property now the National Association
00:31
of Homebuilders estimates that a half
00:34
bathroom adds ten and a half percent
00:36
value onto a home and this property is
00:39
worth probably 160 maybe 170 actually
00:43
probably closer to 160 probably what
00:46
does better but so that brings us out
00:49
less $16,500 what this this bathroom
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according to them will act just for your
00:55
information they estimate that a full
00:57
bathroom will add 20 percent value onto
00:59
onto a home so art we have a Mason great
01:06
guy very talented very gifted who's
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going to give us a half bathroom for
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$4,000
01:12
now he's I'm based in these Mason's they
01:13
don't care they don't care about bricks
01:15
they don't care about opening up walls
01:16
it's nothing to them that's what they do
01:18
whereas you have to talk to a contractor
01:21
it gets to be a big thing basing pulled
01:24
this off they'll do it all day long so
01:27
basically when you subtract $16,500 or
01:30
I'm sorry subtract the $4,000 cost of
01:32
the bathroom from the 16,500 that will
01:34
get in equity it's a great deal so it's
01:38
kind of a no-brainer for us but our
01:39
reasons are actually other than just
01:41
monetary I mean it's at least monetary
01:43
so I guess if you follow my train of
01:45
thought it eventually does get monetary
01:47
but we bake we inherited a tenant that
01:49
is not really ideal for us she's an
01:52
elderly woman who is in incredibly poor
01:54
health
01:55
now we expected her to move out by now
01:59
she's waiting to get to an assistive
02:01
living development and it just hasn't
02:03
happened and it doesn't look like it's
02:04
going to happen anytime soon
02:07
so that's kind of causing us a problem
02:09
because the property is actually worth
02:10
in rented far more than she's actually
02:12
currently pay so as is right now she's
02:15
paying five hundred and fifty dollars a
02:16
month on rent the property is worth
02:18
eight hundred and forty dollars a month
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in rent as is you know when we've
02:21
finished we expect to get around eleven
02:24
twelve hundred dollars in rent so we
02:25
want to get in there we want to renovate
02:26
it we want to make it new we want to get
02:28
our equity back out so on and so forth
02:30
we want to do everything we do now we're
02:33
not the business of being nice to old
02:35
ladies you know we're not and I don't
02:37
suggest you being the business of making
02:39
nice to old ladies there's really not an
02:43
economical way foundation that you can
02:45
actually run your business being overly
02:47
nice to elderly ladies however we're
02:50
definitely not the business of being
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mean to elderly ladies either so my wife
02:55
and I are looking to boot this poor
02:58
woman who's lived in this house for 12
02:59
years now where are we looking to crank
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her rent up from five hundred and fifty
03:05
dollars to the forty that it should be
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so we're trying to figure this out
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without damaging the tenant I don't know
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that I'm fully advocating that you do
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what I do we don't have to find our own
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path this is my wife in my path but this
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half bathroom actually helps us out
03:23
because she actually can't get up the
03:25
stairs to use the bathroom so she
03:28
actually had a toilet installed in the
03:30
stairwell of the first floor so there's
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the toilet this random toilet just
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sitting in the middle of the floor
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horrified certainly attracts value from
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the property so this half bathroom is
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actually going to allow us taking rid of
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that toilet it's going to allow us to
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give them a bathroom that they can use
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so we can get into the only bathroom
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that actually is there the full bathroom
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and give it a full gut job and the
03:54
daughter can go sees an adult daughter
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so you can go to the gym and shower
03:58
there and at least they'll have a
03:59
bathroom that they can relieve
04:01
themselves the full bathroom upstairs is
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just a full gut I mean everything has to
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go the toilet has to go the tongue has
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to go that vanity has to go the ceiling
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has to go the walls the floor the
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subfloor everything has to go so it's
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we're going to need a good two weeks to
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get in there and to do this you know
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it's a Philadelphia home
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the largest really can't throw a lot of
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contractors in this room it's too small
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really if you had two contractors
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working that that room it's going to get
04:28
a little tight we'll probably just use
04:29
one contractor and I'll probably just go
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there and work on it myself so again I
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just want to talk real quickly about the
04:37
value a bathroom adds to a property and
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maybe discuss some of the reasons why we
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do what we do and I'm gonna upload some
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photos of the before photos some during
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photos and some after photos and
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hopefully you guys can actually create a
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dialogue and we can actually discuss in
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the comments on this video the different
04:56
things that different improvements that
04:58
one would make and the value that it
05:02
might not anyways you guys enjoy your Saturday

Author:

Joe White

Joe White is a Philadelphia Property Manager and Real Estate Broker. He is the owner of Grow Property Management and has been involved in the management, sales and purchases of Philadelphia area rental investment properties since 2008. He is an author and works as a real estate investment consultant and construction manager.

View all posts by Joe White