Been a while since anyone has posted in here... But oh well.
Just started watching the show, and while a large portion of the show's math is hard to believe, the decision to renovate a rental is always the right one.
I've been a landlord for just over 5 years now and am on property #12, so I'm starting to really get the hang of it. I just want to address some comments here:
1- "income property doesn't ever mention the cost of loan payments for Reno's" First off, I've seen a number of episodes where this is mentioned, and taken in to account. Second, most of the time when I buy a new home I get a MTG+improvements deal so that everything is included in one MTG pmt. Also, when banks calculate debt/income ratio it isn't an exact translation in the income property biz. Basically 80% of your rental income is subtracted from your MTG pmt+property tax. The number left over is either added or subtracted from/to your income which makes it easier to get approved for the next MTG. If you play your cards right, you will get approved for more each time. The beauty of it, is that all these debts are being covered by tenants. So none of it is ever your own money.
2- Why spend an extra $15k for only $150/mo more? There are TONS of reasons: That extra $15k is made up instantly about %80 of the time in equity gain, and often it can add more than $20k in equity if you pick the right home in the right location and do a good job with your Reno's.. It also allows you to broaden the market you rent to, which allows you to be pickier with tenant selection, which WILL save you thousands on long term maintenance problems because better tenants take better care of their homes. This also reduces the risk of getting tenants who miss payments(brutal headache). Most ppl choose the cheaper reno option, MISTAKE. When you have a one bedroom suite and nobody but bachelors are available to rent it you will be kicking yourself. I was.
3- Scott's style is going to be dated so quickly. Maybe, but if you notice, he often installs universal cabinets from ikea and laminate flooring, which means the cabinets can be re-faced for dirt cheap, and laminate flooring is infinitely more durable than hardwood, not to mention super easy to install and remove. Besides, the most you can hope for on a reno cycle is 15-20 years, so you want to set it up so the next reno is super cheap and quick without sacrificing quality.
4-" His budgets don't make sense, those Reno's would cost way more.". Not sure about you, but my reno costs are only about 10% higher than his.