Knowing the construction and how much these be put in the home is crucial to your success in investment real estate. I see people all the time that put too much money or too little money in investments that they purchase. You need to understand what that the market you're in and what the home needs to get your desired return either by rental, flipping, and lease options.
I'm going to show you the home I did in Cleveland Heights and 3321 Beechwood that the client wanted the property to be a rental property. This property is already in pretty decent condition but needed some touch ups and maintenance to ensure the higher rent. We went through the whole house and painted and updated all lights, plug-ins, switches, and blinds.
That was the basics we also had to paint the outside of the home and service the furnace, hot water heater, and snake all plumbing internal and to the street. We also had to cap some electrical boxes and make sure all the electrical was up-to-date. In most of these older homes which I really like because they have basements with all the plumbing, electrical, and utilities that are easy to get to. This particular home had a newer electrical box in it. Remember just because an older home doesn't mean the electrical is bad or out dated, it just means you might have to exchange it in most cases you don't. Electrical wiring is pretty easy to run through an older homes. There were some trees we had the come back and we painted the back porch area as I explained in the video.
Back to the subject of construction is the key to your success because there were many different ways to remodel a home. For example in this particular home if I was going to flip it I would've put recessed lighting in the living room,dining room and finished up the basement to make a living area. That would've been extra $3000-$5000 that my client did need to spend. I would have also dumped another 5k in the kitchen and bathrooms. The fact was this home was rented three weeks before we have completed four $1100 a month. Knowing what was needed to get the $1100 was the key to this property success and my client's success. Maintenance is always a key to your home making sure that all utilities work properly. In this particular house I also put in new lighting in the bedrooms because sometimes those go out within the first year.
We've also done many many homes(over 600) and understand how the construction must be done in order to have low maintenance through the properties investment life.
Properties don't have to cost a fortune to remodel they just need to have the right things done to them at a reasonable price. One more example in older homes I use washable flat instead of enamel much less expensive but looks great especially in older homes were some the walls are not perfectly straight.
So don't be afraid invest just make sure the company you go with has the correct construction company to make sure your property is remodel correctly. All my contractors are license and bonded with each city that we do business in. So watch the video below on the finished product of this beautiful home and I've also included a slide show for you to view. All by the way this home was $46,000 total purchase and remodel.
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