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Renovating, Worth It or Not ??
I been looking to buy a multifamily home for a while. I have finally found a three family home in a amazing neighborhood for a low price. The problem is that it needs a lot of renovating. I would say a over $45,000. The first and third floor needs renovating because they are in bad condition. I would have to break walls down and put up new walls with new tubs, cabinets, stoves, and doors.
Here is the link of the house if anyone wants to check it out: Free Classified Ads
I got some opinions from different people on whether I should buy this house and renovate it or I should look to get another house that does not require that much renovation. I'm still undecided.
I am not sure if renovating is worth it or not, I know some people have been screwed over trying to renovate a home and I also know some people have turned some really bad homes into amazing houses.
So guys help me out over here, is renovating Worth It or Not???
Re: Renovating, Worth It or Not ??
We have put way more than 60K into our 1700 sq ft ranch home - and feel it was worth it. (House has no mortgage and we had the cash to pay as we did the work).
What are your goals for the house? Keep forever? What is the market for a renovated property in that location?
Get an inspection and then my recommendation would be to have several GOOD contractors come and give estimates on what NEEDS to be done. You could have additional advice from an interior designer to help plan space, and other elements for design.
In addition to appearances, you need to look at the windows, insulation, plumbing, electrical, heating/cooling systems.
If you are going to do this - to it right.
I been looking for an investment home to basically just rent out the apartments and collect the money. I been looking around and all the houses go around 550K to 600K. This house is three family's and will basically will pay itself off. The owner is willing to give it to me for 470K, but I have to renovate it. Then hopefully I will not have to put in any more money into it. I'm afraid that if I run into big problems in the future then I might not have the money to cover it.
Thank you for the tips, I am definitely going to look more into this since I plan to buy it.
I can't tell you if renovating makes sense in your case but will tell you renos will probably be more than $45k. We bought a fixer upper last year and have already put $30k in doing all the work ourselves. We probably have another 30-40k to redo the guest bath, basement and redo the master bed/bath. We did get a great deal- great older home on a great lot.
Know that moving and opening walls could lead to pricy problems. You may need to redo electric (bring the whole house up to code), move and fix plumbing, add headers for support, and move ductwork if possible. These are all really expensive and would call for professionals to help. Bring in some contractors before you make an offer just to get a ballpark of actual costs and to see if your plans are reasonable (if the wall is load bearing it might not be able to be removed).
It's highly unlikely that you "won't have to put anymore money into it" after renovating. Things come up all the time, especially in older homes.
We bought a house that was technically "move in ready", but we wouldn't have wanted to. It needed updates, badly. It's been a year and a half and I'm sick of living in a construction zone. We'll be buying new or nearly new next time. Renovating just isn't worth the hassle for us, although it will lead to a better return on our investment. But to each their own.
My friend just renovated his basement and his contractor did it for $21,000 including electricity, plumbing and all that. They did an amazing job at my friends place. I'm thinking 45k to 50k for both floors with new appliances. That's my worry, I want to make sure I have the money to fix everything right now and not have to worry down the road.
My uncle renovated his basement and spent over 25k on it, two years later he had to redo the whole entire place again because the contractors didn't do a good job. Plus he put in bad tenants. I would hate to run into the same problem.