Worst Projects For Adding ROI To Your Raleigh NC Property

While some renovations add value, in our latest post, we want to let you know about the worst projects for adding ROI to your Raleigh NC property.

Not every renovation project is right for your bottom line. Some renovations simply aren’t worth it. Below, we will discuss some of the worst projects for adding ROI to your investment property.


This is probably one of the worst improvements one could make, especially on a rental property.  Pools are common items in the luxury market, but for the $300,000 and under range, this will only take money out of your pocket.

When I’m shopping for investment properties, I am immediately turned away by homes that have pools in them.  They carry a lot of potential liability as a landlord, and they are expensive to maintain.  Also, they are costly to fill in.  Unless you live in a luxury home in the Wake County area, I would avoid adding a pool.

I’ve visited many homes with custom cabinets, shelving, entertainment centers, etc. that sat on the market because buyers were not responsive.  You have to think about a house as a product, and anything that is overly customized will not produce a return on your investment.  Always as yourself, how does my home compare to others in the neighborhood?  It should be similar and comparable.  While you are free to add some personal touches here and there spending thousands of dollars on custom items will not produce a return.

Adding a Sunroom
Sunrooms are expensive to build, and they have a lot of hidden costs associated with them.  There is additional insulation as well as heating and cooling costs.  If you decide to open up space, you have to consider upgrading your HVAC system so it can handle the additional square footage.  There is also a lot of red tape concerning permits and inspections.

As a cash home buyer, I see a lot of distressed sellers that have added sunrooms but were unable to get the addition to pass inspection.  This results in the sunroom not being counted into the square footage at appraisal time.

As far as return on investment (ROI) is concerned, I would avoid adding a sunroom.

Garage Addition
While garages are in demand among home buyers, they are expensive to build. Don’t get me wrong, garages are great, and whether you are storing your car or just your stuff, everyone is bound to find a use for a garage.  The problem arises around the resale time when you try and recoup your $20,000+ investment into building the garage.  More often than not you will be lucky to break even.  The overall value of your home isn’t going to increase enough to justify the cost of building the garage. The permits, materials, and construction costs will add up, making a garage addition not worth it if you are looking for the highest profit margins.

Adding a Bathroom
While adding a second bathroom to a one-bathroom house will add value, you have to consider the renovation cost.  We ran into this issue in a renovation project in Apex.  We renovated a 3 bedroom 1 bathroom by adding a master bath.  The project went over budget, and even though the house sold fast, the profit we made relative to what we spent was much lower than expected.

Before making any renovations to an investment property, consider what the return will be like for you. Some projects will be great additions to the house, but won’t provide much of a return on your investment. Run the numbers to really understand which improvements and renovations you should be making to your Raleigh investment property.

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To learn more about some of the worst projects for adding ROI to your Raleigh investment property, get in touch, we are here to help! (919) 473-6885

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