Updated almost 6 years ago on . Most recent reply
First Renovation: Am I Overdoing It?
My wife and I have been working on the first unit renovation of a fourplex in a B-ish class area. There is a lot of development around and we definitely are producing a unit much higher than the typical in our area, but I expect others to follow suit soon. We did a lot of the work ourselves but it still cost about 30k since we hired professionals for permit work and replaced appliances. We both work full time and its taken about 10 months for us to move into this unit. We start the next unit soon and I wanted to get input from this community on things I may hold back on next time or if the amount done is reasonable.
Purchase price 555k with 20% down. Current rents are $1050 and will be raised to 1400 after renovation. The plan is to refinance in 1 year after all units are done.
Most Popular Reply
I don't think there is a huge problem with your finish level, but the costs seem a bit high. The biggest problem is that it took 10 months, as long as you pay less than $14,000 in labor it is worth it to get it done sooner, because that is how much rent you'd be missing out on.