Our teams have installed countertops in probably close to 1500 investment properties over the last couple decades including at least 20 personal properties that belong to our founder and his family. Here are his thoughts and opinions.
In today’s world everyone is, or wants, to be a real estate investor as it is the new fad everyone wants to be a part of. After all, who does not want to own a few properties that will make them hundreds of thousands of dollar per year in passive income while you sit on a beach. Or at least that is dream you are sold.
To be successful though you need to be able to separate your emotions from logic. If you can, you will be successful. If you can’t….. well, then you won’t. We have installed countertops for individuals that are wildly successful and we have put in probably twice as many countertops for those that were not. Here is what we have learned.
If you are asking, “Which material is best,” there is a very good chance you are a new “investor.” Almost every first time client we have worked with spends more money than they should on their first property, because they let their emotions get in the way and make choices as if they are going to be living in the home. This is a HUGE mistake.
Most of our clients starting out have bought a home in the $200K to $300K price range. Keep in mind that in 2018 the average price for first time home buyers was $220K ($219,300 at the end of Q1 2019). So these price points are on the LOW end of the scale. It is hard to believe that $250K does not buy you hardly anything in 2020, but that is the reality of today.
This being the case if you have a home in this price range, we would recommend going with the following:
Kitchen:
-Level 1 stock quartz
-Level 1 or 2 stock granite
Bathrooms:
-Remnant granite or quartz countertop (maybe.. if you get a heck of a deal)
At this price point we recommend you do not spend any more. The goal of an investment property is to make money – not spend it. By going with these entry level materials and designs you will be using countertop materials that entice buyers or renters, but help you maximize your ROI.
Before you make any choices we highly recommend you walk model homes for entry level builders like D.R. Horton or KB Homes that are in this price point to get a feel for the materials and selections they are using.
You will find these starter homes are extremely basic. They are this way because that is what it takes to make money.
Do not make your decisions based off of Instagram or Houzz. Nobody posts pictures of $200K homes on social media as they are not inspiring. Odds are if you see something on social media that is “inspiring,” it is probably in a home that costs much more than your first investment property.
You are welcome to buy a more expensive countertop, but we think this is foolish for you and the countertop company you are working with in the long run.
Why? Because if you are serious about making this your new profession, we want you to be successful so the local countertop company can sell you countertops in each of your next homes. It does the local countertop company no good if you blow all your money, make unwise decisions and do not succeed.
We do recommend you go with a quartz or granite countertop (even if the absolute lowest price) because it will still feel more luxurious as compared to solid surface or laminate to most tenants.
The one condition would be if you know your rental will target the age demographic of 50+ as they really do like solid surface because it was the countertop material of choice when they were in their “prime” working years so this age group tends to love solid surface because it was the aspirational material to have in the 80’s, 90’s and early 2000’s.
Just because you make “higher end choices” does not mean you are not going to get more rent, or necessarily get a better tenant – there is a point of diminishing returns. Homes at these price points get the rent they get based on where they are located.
Bottom line, check your emotions and spend some time walking the models of entry level builders. You will have a much better chance of making wise choices and ensuring your first venture is profitable so that you can continue to build your kingdom.
