Upgrades / Renovations That Didn't Work

[Joshua Dorkin]

Hey All -
A friend in the press asked me if I knew anyone who has done a rehab or home renovation that just didn't work. Essentially, have you done project or upgrade that didn't return what you were thinking it would?

Jump in and share your story . . .

and if you'd be interested in getting quoted on your experience, please indicate so, and you may get contacted by a reporter.

[Jake Kucheck]

The cheapest property we ever bought was for $38,212.01. Our estimate of value was $80K, so this was < $.50 on the dollar. Good buy, right?

Maybe not.

This property was in a city in which we had previously only bought mid-high end properties. Thus, our rehab crew knew how to to do mid-high end rehab. Despite the pleading of our agent, we over-rehabbed this one (in a "working class" neighborhood), spending $15K on the typical pergranisteel (pergo, granite, stainless steel) that goes into our middle of the road flips. As it turns out, we probably could have gotten away with $8-10K worth of rehab, saving us $5-7K. This would have come in quite handy, as our closing price was not $80K (we were wrong the the ARV, too), it was $67,500. So, all told, we didn't lose money on the deal, but we didn't make much either.

The lesson here: when you're going outside of your comfort zone on a neighborhood, be conservative with your initial valuation, and don't overspend on the rehab when you don't have to.

I'd be fine talking to the media about this. Phone number in signature.