Posts Tagged ‘cost to remodel a home’

Make Money in Real Estate

It would be nice if making money in real estate was easy. Unfortunately to make money in real estate requires a lot of time and effort. The only way to really profit buyiing and selling real estate is to do the work yourself. DIY home remodeling will yield the most profit for your labors.

Finding the right property in the right location is key as well. The old saying “Location, loacation, location” has a lot of truth behind it. Typically your property search should be for a home in a desired location that is relatively cheaper than surrounding properties. Buy low and sell high is what we’re after here. Things to consider would be accessibilty to interstates and convience stores. How good are the schools? Are the taxes reasonable?

I was able to find a home close to shopping, interstates and great schools. Luckily there was also a couple of home centers close to help with buying supplies for my home remodel. My small two bedroom one bath home was in a great location for a DIY home remodeling project. The plan was to remodel and live in the house for a couple years then sell and hopefully make money in real estate for the first time.

Initially the old home was going to need lots of remodeling. I was able to purchase the home cheap as it was in need of alot of repair. I think one  must really strive to have a open mind when looking at real estate. I kept a vision of how I wanted it to turn out and made it happen. Keeping my goal in mind the whole way through the remodeling project kept me on track. I new the payoff would be good in the end and my labor would be worth the effort.

The cost to remodel a home would have to be limited in order to keep the selling price reasonable for the real estate market at the time. I took a good look at the scope of the entire project and all my resources to keep my cost to remodel at a minimum. Fortunately I created a list of all my expenses of the cost to remodel a home. Check it out, it may give you an idea of what it would take financially to do your own home remodel.

Throughout my remodeling project I took lots of pictures. People have different tastes but hopefully you will find my remodeling pictures useful to give you inspiration to make money in real estate with your home remodeling projects.

Be the first to comment - What do you think?  Posted by muellerd - April 18, 2011 at 9:34 AM

Categories: Getting Started   Tags: , , ,

The Cost to Remodel a Home

If you’re like me you wonder how much it’s going to cost to remodel a home? That’s not an easy question to answer. Through out my remodeling project I kept track of all my reciepts and expenses. Luckily for you I have organized all my remodeling costs to give you an idea what it might take to get your home remodeling project going. This list is based on a total home remodel of a roughly 1000 sq/ft home with two bedrooms and a single bath. I saved money as much as I could by reusing  or restoring items. I saved big time on the kitchen by finding some very nice used cabinets that someone wanted removed from their home as they were installing new cabinets. The home was purchased in a gutted condition. This actually saved some time and a little bit of money. I had practically no outside labor to pay which kept my cost to remodel a home low. It required lots of sweat equity but what the heck , I was trying to make money remodeling a home – right?

Some things to think about.. I decided right off that if I needed a tool I was just going to go ahead and purchase it. I found that having the right tools available made my remodeling project go a lot faster and gave me good results.

My home remodeling cost list includes all tools, materials, services, heat/air and kitchen appliances that were used to get the home into move in condition. These prices were current in 2006 / 2007. Remember, that was right after hurricane Katrina which drove the price of building materials up. Just my luck! The cost today (2011) is about the same as back then. Maybe even cheaper in some cases. It’s crazy but I actually purchased my home back when the real estate market was hot and sold the home when market was low. Totally backwards but I was still able to make money remodeling a home. The potential earnings would have been even greater had I bought in a down market and sold in high market. That’s the way it goes..

Before the home remodel project was started

After the remodeling project was finished

 Home Remodeling Cost List

  1. Fasteners $900.96
  2. Lumber $4,463.53
  3. Electrical $3,196.14
  4. Plumbing $1,209.94
  5. Flooring $2,682.74
  6. Windows $1,098.10
  7. Doors $1,187.97
  8. Electric Fixtures $1,229.36
  9. Plumbing Fixtures $977.99
  10. Siding $2,802.43
  11. Drywall $3,606.65
  12. Misc Supplies $1,502.60
  13. Outdoor/Yard $779.76
  14. Roofing $ 693.68
  15. Insulation $931.25
  16. Heat/Air Conditioning $3,501.98
  17. Interior Misc $871.95
  18. Appliances $4,700.10

My total cost to remodel a home was $39,011.55. The original purchase price was $47,000.00. So my total investment was $86,011.55.

The real estate market in my area averaged over $100,000.00 for a two bedroom single bath home. I decided to list it for $125,000.00. It sold quickly. After all the transaction expenses and realtor fees I was able to profit roughly $30,000.00. Not too bad for remodeling a home and living in it for 3 years. It was a fun learning project. Now to move on to the next home and make some more money remodeling. If things go well I should be able to get into a very nice home and have it practically paid for – mind you this comes with doing a lot of labor. I think it’s worth the effort though.

Be the first to comment - What do you think?  Posted by muellerd - March 20, 2011 at 12:58 PM

Categories: Planning and Design   Tags: , , , ,