House remodeling question

[Matthew Charron]

Hey everyone I have got a quick newbie question. So I am currently a renter and a brand new investor trying to get into the business. I don't own any properties, not even my own. However my fiancés grandfather came to us recently offering to sell is his house for 100k less than it's estimated at. The house is in great condition as far as I can tell. It's just a tad out dated and doesn't have a finished basement. I was looking to purchase with a full 203k loan as I have to put in a septic system and I would like to remodel the house. My question at the moment is... who exactly would I be looking to speak to about the design of the remodel? How to make best use of the space available. It's a 3bd/1ba about 1234sqft I believe. No master bathroom. I'd like to open up the kitchen to the dining room and maybe even the living room and would love to try an add a master bath and finish the basement. Just not really sure who to contact to get an idea of how we can use the space available to us. I know I need a certified 203k contractor to do the work but are they able to decide how to use the space or would I need an interior designer or architect or someone like that? Thanks all!

[Greg Scott]

The first question is are you planning on living in this home or making it a rental?  If you are going to live in it, especially long-term, make it into something you love.

If you are going to turn it into a rental, it concerns me that you are talking about very sizable rehabs that may or may not add any value as a rental.   The easiest way to know what is smart and what is not is to do a market survey of that area.  Go look at a number of rental houses.  See what level of finish they have for the price and then note how quickly they get rented up.  

You may find that all the houses in that area have unfinished basements.  If so, putting in a finished basement may not add value.  Or maybe half do have finished basements and those that do get $100/mo more rent.    Get the idea?  

Let the market tell you what rehab is needed.