How to Budget for a Home Renovation and Best ROI

How to Budget for a Home Renovation and Best ROI
by

Get a Washington Hard Money Loan for Investment Property Upgrades

Investing in real estate is a balancing act of money in and money back.

Successful investors understand that justifying ROI when it comes to renovation and repairs of an investment property is an important part of the equation.

Knowing how to create a budget is key. What you want to do and what you can afford to do may be two different things. Making cost efficient upgrades to a rental property or fix and flip in a hot real estate market like Washington State requires careful thought and planning.

Follow these steps to calculating a renovation budget and get the best return on your investment.

How to Create a Home Renovation Budget for Highest ROI

  1. Estimate costs: Gather general information about anticipated project expenses. If doing a major renovation, talk to a contractor or professional designer to get a suggested range of costs.
  2. Determine financing: Look at your financial resources, including cash and loans. Figure the total available you’ll have to spend and estimate monthly payments. If you can’t afford the expenditure, reconsider project costs.
  3. Get contractor quotes: Get contractor referrals, then go to a minimum of three prospective contractors for bid. Provide your preferred materials and project details to each contractor to ensure bids are uniform. Add a contingency of 15-20% to bids received.
  4. Prioritize and fine-tune: Look at estimated costs and assets and adjust your project accordingly. Talk to your contractor or designer. Consider cost-effective repair and renovation alternatives, downsize or DIY.

Plan ahead, fit your budget to your means and guarantee success!

Get an Easy Equity Loan from Our Washington Hard Money Lenders

We help take pressure off financing concerns. Our lending team provides fast cash hard money loan services to real estate investors throughout Washington. We understand the market and are happy to share over 30 years’ of experience with our clients. Call Gregory M. Russell at 1-888-477-0444 to learn more about how a private money loan can help get you the funding you need for your investment property renovation project.

WEB | SEO