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Updated about 5 years ago,
House Hacking BRRRR: Where does it stop?
My wife and I are starting out our real estate investing journey by getting our current house ready to rent. We have a small 2 bedroom, 1 bath house with a nice yard in a great little town. The house hasn't been renovated since 1976, and was built in 1953. Our goal is to do most of the work on our house ourselves and get the house ready to rent by December 2020. Here is all the work we want to do on the house:
Interior:
Flooring - currently has cheap carpet throughout and wood floors in the kitchen. We want to tear out the carpet and wood, and do laminate wood flooring throughout the entire house and tile in the kitchen and in front of the fireplace. (~$2.5k)
Walls - new paint on all walls, ceiling, and trim (~$250)
Fixtures - replace old ceiling fans (3), bathroom light fixture, hallway light, and kitchen lights (2) (~ $350)
Fireplace - current fireplace wall is outdated, update to an accent wall and give the house a unique bit of character (~$500)
Kitchen remodel - update cabinets and countertop, add backsplash and minor floor plan changes (~$9k)
Appliances - add electric water heater and new fridge (~$1500)
Misc - new blinds on windows and minor closet changes to make better use of space (~$500)
Exterior:
Fence - Part of fencing is old and falling down, 162 linear feet needs to be replaced, as well as a gate on one side of the house. Cost unknown
Concrete - currently has a gravel driveway measuring 12 feet wide and 45 feet long. I would like to put down fresh gravel at a minimum and ideally new concrete. Additionally, I'd like to add a small concrete patio about 12' x 12'. Cost unknown
Landscape - while I would like to update the landscape, it doesn't make sense to put a lot of effort into this. I will add seed and fertilizer this spring and have a professional prune trees and bushes to increase the curb appeal. Cost unknown
Paint - my wife does not like the color of the house, and wants to repaint. No issues with the current paint however, so I'm not sure it makes sense to put a lot of effort into this area as well. Cost unknown
Labor: most of the labor will be done by myself and family (my wife's dad is a carpenter). We will hire an electrician for wiring the new fixtures and outlet installation (~$100/hr)
The goal for our renovations is to increase the amount we can rent for (close to $1700/mo after rehab), to stand out as a cleaner and newer house than the renting competition, and to force appreciation in order to get a better heloc for future investment projects.
Please let us know what you think! Are we focussing too much on one area, or is there something that we definitely need to be investing in to increase the value of our property? Is there something that we missed all together? And do you have any recommendations for contractors or electricians in the Tacoma Washington area?
We appreciate all the feedback in advance!