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Is there a limit you should spend on remodeling when you care about return on spend?

Let say a 3b2b house of 1600sqft on a 7000sqft lot, which typically worth 800k in a neighborhood. Does it make financial sense to spend 200k to remodel the house in and out, completely transfer the yard, adding a shred, while a slightly outdated 4b2b house of 2000sqft typically goes for just 900k?

Sure, we shouldn’t ever expect to get 1:1 return on spend, but is there a limit on how much one should spend on their remodeling before it makes more sense to buy a better house to begin with?

Or, which do you think is more important, the size of house and # of bedrooms, or the styling and the appearance of a house?

submitted by /u/Zookeeper1099
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source https://www.reddit.com/r/RealEstate/comments/pxy3s0/is_there_a_limit_you_should_spend_on_remodeling/
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