Renovations - How it affects your rental income

[Matt Koury]

Hi Guys

I have not yet started investing in real estate but I would like to buy my first investment property. I have attended seminars, trainings and have been doing my own due diligence. I'm starting to understand how it all works but there are still some things I'm unsure about.

Firstly, once I have bought the property, when can I start renovations on it? Is it after closing or can they be done once the property is in escrow? If it is after closing, can I still have a tenant occupying the home whilst I do renovations?

Secondly, do I have a tenant in place as soon as I have bought the property in order to cover expenses before I refinance the home? My goal would be to do a cash-out refinance to cover my down payment and the cost of the renovations ...

Any advice would be greatly appreciated!