#ad #sponsored I am being compensated by DIYNetwork.com to blog about my experiences of renovating properties,
but all opinions and suggestions and photos are my own.
Have you ever considered renovating homes
for extra income?
I get asked a single question all the time.
How did you get into renovating houses?
I am proud to say that I followed in the footsteps of
my father who has been renovating properties
to resell and/or rent for over 25 years.
So, I am offering a little of my professional insight
and sharing…
5 Things to Consider When
Renovating a Property for Extra Income.
Have you ever watched the show on DIYNetwork
called Income Property with Mr. Hottie McScottie?
😀
It’s one of my favorite shows and Scott McGillivray,
who is an actual home renovator, and is brilliant.
He gives some very good advice to homeowners
looking to purchase a home that can be renovated –
to include renting out an area of the home, which
will help offset the mortgage payment.
While my family and I do not have income
properties located inside of our homes such as the
ones primarily renovated on
Income Property, we do renovate properties and
keep several along the way for extra rental income.
Others, we resell, or as the term is widely known –
we “flip” the houses.
“Flip” meaning we find, fix, and flip it back on
the real estate market.
{ Living Room Before }
Consideration No. One : Schedule
Our family takes on, what I would call, a “soft” flip.
Meaning, the homes mostly require cosmetic updates,
new roof, new HVAC, new landscaping, decks, etc.
We have taken on “hard” flips in the past, which
involves a lot more renovating such as shoring up
the foundations, rewiring electrical, moving
load-bearing walls, etc. But, honestly, we have found
we can make a better profit with a “soft” flip
and not be tied up with one property too long.
Find ’em. Fix ’em. Flip ’em. Fast!
So keep in mind your schedule when
renovating considering a property.
{Living Room After }
Consideration No. Two: Profit Margin
While Profit Margin should be the Number One
consideration, in many ways you cannot determine
that until you decide upon how small or large of a
renovating project you wish to tackle.
There is an old saying that rings true in this
business…“Time is Money.”
If you are paying interest and carrying charges
on a monthly basis, the longer the renovation drags
on the less profit you will make. Also, you have
to consider the really nasty part of making an
income or profit… paying taxes.
If you plan on reselling the property, there are
short-term taxes you need to consider.
So, the profit margin, after everything has been
paid and all sales taxes, real estate commissions
and attorney fees (etc) have been paid – needs
to be an amount you feel is worth the effort.
{ Dining Room Before }
Consideration No. Three :
How to Find a Property
This may be the hardest of all.
Identifying and securing a property.
When it comes to buying investment properties,
it’s a dog eat dog world.
Not only do I have a full-time Real Estate Agent
scouring the internet and MLS for me –
I also pay for several Foreclosure sites and
keep a steady vigil (some would call it stalking)
on lots of Auction sites.
All States and areas are different. I would highly
suggest working with a good Realtor who deals
with or is familiar with Foreclosed Properties.
{ Dining Room After }
Consideration No. Four :
What Style Do I Go With?
This is probably the second hardest thing for
most renovators. Choosing a style that will be popular
and make the house both marketable and/or sellable.
Sometimes, that means going against your own
style in some cases. I let the house speak to me.
If it’s a Traditional-style home.
I am not going to renovate in a Modern Loft Style.
Neutral colors which will appeal to a lot of people.
You can’t make everyone happy – but you want to make
as many people fall in love with the home as you can.
{ Bathroom Before }
Consideration No. Five : Budget !
I cannot stress this enough! Many couples whom
I advice during a renovations have often overblown
their budget big time.
Why? For one, they didn’t account for the unforeseen.
I always add at least 10% more for a soft flip,
and 25% more for a hard flip.
Second, it’s so easy to fall in the “that more
expensive file is so much prettier than that tile
which costs a third less.”
While you don’t want to sacrifice style and beauty,
you need to make compromises based on
the BUDGET!
The bottom line is always… PROFIT!
You can create a gorgeous, renovated home without
purchasing all the high value components.
{ Bathroom After }
…………………………………….
So, let’s review…
No. 1: Schedule
No. 2: Profit Margin
No. 3: Identifying and Securing
No. 4: Style
No. 5: Budget
If the truth were known, there is a Number 6 – 252.
😀
Number Six would be GUTS. It does take a degree
of guts to find, follow through, finance and fix
a property for either rental income or to resell.
But, I promise – once you have your first renovation
under your belt – you will have “the fever.”
………………………………………..
For more great renovating ideas and advice,
you can always tune in to Income Property and watch
the fabulous Mr. Hottie McScottie, every Thursday
at 10/9c on DIYNetwork.com. I am excited that all
new episodes will be starting this Fall.
………………………………………….
For more of my Renovated Home Projects and
Completed Flip Home Tours…
Click HERE for Flip House Tours.
Do you follow me on Pinterest?
I have lots of fabulous DIY, Crafts, Recipes and more
to inspire you. While you’re at it, I would love for
you to pin this image to your favorite boards.
…………………………………
Thank you for spending a few
minutes of your day here with me.
You can follow along with
The Everyday Home here….
xxoo, Barb
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This is a sponsored conversation written by me on behalf of DIYNetwork.com. The opinions and text are all mine.
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