How to Begin a Conversion and Renovation Project

If you are willing to purchase a reasonably priced home in need of updates or renovation, you should also be willing to seriously consider exactly how much time and money those renovations will require.

Save yourself emotional and financial distress by following these three simple steps:

Step 1: No matter how much you budget for renovation, prepare to spend ten percent or more above that.

Any time you remodel, you have to expect the unexpected.  Allow your budget some wiggle room to cover those surprises that turn up under flooring, behind walls, or in the pipes.

Matt Lederer, owner of Mahagany Builders, cautions real estate investors to go for quality

“Don’t automatically hire the cheapest painter or handyman because you might be unhappy with the results.” noted Matt Lederer, owner of Mahogany Builders in a recent interview, “Hire the contractor who does quality work.”

Step 2: Prepare for the upheaval that these projects often entail.  

If you have just one bathroom, full of workers pulling out pipes, you obviously need alternatives.  Kitchen renovations can upset your home’s very heart of operations, so budget in time and money for meals out, or plan to buy food that’s really simple to prepare.  Just make sure before your project starts that you and your contractor have clearly established just how long the work will take.

You can make several kitchen improvements for under $100. First, spend extra time cleaning to make the countertops, faucet, and appliance shine. Then for less than $5, re-caulk the counter. Dated cabinets can be made “new” with a coat of white paint, and stylish hardware. If you become a member of Arizona Real Estate Investors Association you’ll receive 25% off at TDC Interiors in Mesa, Arizona.

Step 3: Just as you don’t want to underestimate the cost of renovation, you certainly don’t want to overestimate its payback.

While not all projects recoup their value, kitchen and bathroom remodeling generally perform best in that area.  Proper planning and budgeting will turn your recent real estate purchase into a profitable asset.

Kendall Matthews has been a helping real estate investors and home buyers purchase Phoenix Real Estate since 2004. Interested in learning more about real estate investing? Visit Kendall’s quick survey at www.InvestmentRealEstateCorner/tell-me-what-you-need

Technorati Tags: Arizona, construction, Phoenix, remodel