Renovate now or later?

Question

Hello,

I just purchased my first home, single family with intent to house hack. The house is in really good shape however I would like to renovate the bathrooms and kitchens. I am not sure when I should renovate, and also if I should renovate.

The kitchen is functional and  all appliances work however they are a bit outdated and aren’t very appealing. I would like to update the kitchen cosmetically new appliances and I would like to change the color to more open colors and also remove an the island to create a more open home. The bathrooms wont need much maybe just new vanity’s and flooring.

I am using the property as a house hack and I want to keep it all profitable while still creatin a home that pleases me and future renters. The home now is fine again it would be to hopefully add value and appeal.

So when do I renovate, do I renovate now while ill occupy the home or before I move out. I figure do it now while I just moved in to enjoy it but I’m not sure what do you think?

Mike Sedlacek · Answer

To save on appliances, especially for rental units, I do one of two things. In my area, large apartment complexes often replace working appliances and usually sell or depose of the older items, 50 to 100 refrigerators at once. I found that I can buy from them used appliance still in good shape for under $20.00 that are great for rental units. Also, I go to a large appliance store in my area that sells scratch and dent appliances. I purchased dented refrigerator, gas range, dish washer and microwave, the whole package for half off. Frigediar Brand. On paint I use the same colors on all my units so I get Contractor Pricing. So sign up with Sherwin Williams, if they are in your area and save 20% or more on paint and supplies. For flooring we have discount stores in which I am set up as a contractor and purchase vinyl plank flooring and save 10% or more on items. Friends of mine who have hacked homes felt it was better to upgrade as they lived there and since they would keep things in good shape when it came time to sell or rent they didn't have to rush to get the home ready when it came time. Just saying.

Corby Goade · Answer

Congrats @Demario Scott!

Totally depends on your market. In general, unless you are in a very high end, high rent area, your return on new appliances, countertops, etc, really won't be there. If we are talking about a starter home or a middle income area, I usually do updates as functionality requires them to be done. The cost to gut and rebuild a kitchen would be $8-12k and it might allow me to charge an extra $100 in my area, which would take around 10 years to recoup. I'd rather use that capital on my next deal and build equity in a new property.

Best of luck!

Demario Scott · Answer

@Mike Sedlacek Sweet I will look into these ways to get some newer appliances. If I could my renovations done under 5kmik happy

Demario Scott · Answer

@Corby Goade The hope I purchased is in the middle range a common sort of home in the Charleston area. The kitchen works just fine it could be my lack of knowledge but I figure me adding updated appliances and a more modern look would allow for more property value and appeal to renters and buyers. I am trying to look at comparable properties to see if the updated would add value I was given that advice by other BP members.

Demario Scott · Answer

@Jennifer Rysdam itsal comfortable enough and functional enough I just below that adding a little love and money into it that I would have a phenomenal property.

Demario Scott · Answer

@Tyler Sawyer  Thank you, I am super pumped to have the property under my belt. I also agree that BP has a great community I hope to get clarity on the topic. I am thinking to do the Reno as Voss effective as possible with a good bit of research. And I’ll be in it for about a year and a half so I should be able to maintain it pretty well. But I will continue to tale in suggestions and try to make the most educated decision and also I plan to put up the photos to explain better.

Jennifer Rysdam · Answer

Do what you need to do to be happy living there, and then do the rest as you have time over the next year or so. That way when you decide to sell or rent out you'll be ready to go and not have the delays of remodeling.

Tyler Sawyer · Answer

@Demario Scott congrats on you purchase! There’s a couple directions you could go with your hack.

First you could do the basics like you were saying as you live in the property.  While being difficult living through the dust, you can do those things as you save for them.  Some things to consider, will those things be renter proof if there’s such a thing.  And what is you time period to be in the hack, cause you might have to repair somethings anyway by the time you move out.

Second is to do those things when you move.  A benefit would be that you are not as emotional attached to what you would be doing since you won’t be living there.  For example you might save a little by just doing the basics vs if your living there you might splurge for a premium vanity that might not survive your first renters.  My hope is that this doesn’t happen for your vanity sake 😬.   Keeping things cheap you can be saving up for your next property.  Dealing with old vanities and appliance though not appealing is only short term.  You can get what you really want when you reach your goal.

With that said there’s a lot of experience here on BP so hopefully you get some good helpful hints.  Good luck!

Renovate now or later?

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