As the excitement of closing escrow on your first purchase builds, you’re probably looking for the best ways to renovate your property without spending more than the place cost in the first place. Here is six of the best tips and tricks to help you get the best from your new property.
1. Budget
A word we’re all too familiar with it. With property renovation, you don’t just have to budget for costs but time and your own, personal energy as well. Those offering low-price and a quick-turnaround rarely keep true to their word. If you have a 30 day window to do repairs before your first tenants arrive then you need to make a realistic list of what you can manage in that time. We recommend a very large spreadsheet and some loyal advisors to help you.
2. Expect to invest your sweat equity
Research like mad and educate yourself as much as you possibly can. This is to minimize overspilling beyond your set budget. You also want to plan on investing your personal time into the property for about a month after you close escrow, before the property is occupied. Don’t underestimate the amount of hard work you’ll have to put into collecting bids for contracted work, shopping for supplies and waiting for deliveries. You’ll also have to foresee how long you’ll need for DIY jobs and reviewing the work once it’s done. Plan for the inevitable mistakes and the amount of time/energy investment your property will require. Finally, whilst work is being done, you’ll have the advertising and rental application review side of things to stay on top of. Ensuring that these two jobs run smoothly side by side is a daunting task. You don’t want potential tenants coming to view you’re brand new purchase on the same day that your plumber has dismantled your shower and has made bathroom (temporarily) unrecognisable!
3. Don’t settle with the first bid
It’s like the first pancake, you need to cook several more before getting the best one and the same goes for contracting work. Do you research to ensure you’re getting the best deal. The more expensive the job, the more bids you should get!
