Updated over 6 years ago on .
Renovate or Buy with Refinance Check??
My wife and I have just finished renovating the 3/4 floors in our house. We used the BRRRR method and our appraisal came back 140k higher then what we bought it for. Hopefully our refinance will close this week and we'll have 45k leftover after the renovation debts are paid.
So with this 45k my question is, should I use the money to renovate my basement, or buy a new house with these low interest rates.
I have plans to renovate my basement, transforming it into 3 beds and a bath, it would be apart of the 1st floor unit. Total cost for renovation is 23k and I believe I can get $350 from each bedroom. That’s a 54% return in the first year.
Or should I purchase a new duplex while rates are low. With how the market is now, rates are good but house prices are high. I believe I could purchase a $300k duplex that would cash flow about $200 a month, but have potential value add for later on.
Anyone have experience advice?