Property Renovation 101: Kitchens Part I
As you may have noticed, this past week we listed a new property (which you can check out here) that had been through our signature renovation process. This time around, we posted before-and-after pictures of the entire effort, and due to repeated requests for details on how we did it, we decided to go a bit more in-depth and explain our rehabbing and renovation methods.
If you’re a real estate investor, then you know that sticking to your budget and following a well thought-out plan to the finish line is the only way to turn a profit in this business, and that especially goes for the expense you’ll necessarily incur as you renovate a cheap fixer-upper of a property. Before you even consider buying the property, have a budget for what it will likely cost to renovate it, a projection for how your renovations will increase the property’s value, and whether or not the windfall is worth the initial expense. We’ve talked before about how to increase your property’s value by making additions to various areas of the home (some can even be done fairly inexpensively), but large-scale projects like entire rooms, especially where a lot of resident activity will take place, are serious undertakings and you should have a good idea of where you want to go, how much it will cost, and how to avoid costly, unnecessary mistakes.
The kitchen is one such area of the house. Completely remodeling or renovating a kitchen is no small task, and you should take it seriously because kitchens are, in many ways, the beating heart of any home.
Hire a Professional
Seriously, don’t skimp on this. Not only will reputable contractors give you reliable estimates that can fit within your budget, they’ve got the experience to get the job done quickly and efficiently without time-wasting or money-wasting mistakes. As we’re fond of saying around here, if you think it’s expensive to hire a professional, wait until you hire an amateur. Trust us on this one.
Have a Schematic Design, and Keep It Simple
Obviously, you need to plan and research what exactly you think you need, which will help a contractor give you a reasonable estimate, but ideally your own research should give you an idea of what to expect beforehand before you even talk to a contractor. Not only will this ensure you come from a position of knowledge when negotiating a price, it will help you avoid being overcharged as well. A schematic design makes it even more clear to both you and the contractor what the final layout of the kitchen will be and how to accomplish it. Keeping it simple, in most cases, is the way to go. Unless you really want that center-island stove or that second sink, it’s probably best to keep the location of old appliances even as you replace them. Use existing plumbing, electrical, and gas fixtures and you’ll wind up with a much lower final bill and chances are, despite the kitchen’s need for remodeling, the existing layout probably isn’t that bad.
Consider The Style of The House and Lifestyle of Potential Buyers
It helps to think about the rest of the house and whose needs it’s likely to meet. Is it a large, 3-bedroom home with a yard that a family is likely to buy? Or is it a smaller 2-bedroom condo? What you do with the rest of the property – and who you intend to market it towards – should inform your decisions on how to go about the kitchen. For example, a large suburban family-style home may benefit from additions such as breakfast nooks and center-island counters, while the young, professional buyer of a smaller home may prize a sleek layout and subtle design.
Have a Budget and Stick to The Plan
To quote a friend of ours, the best way to go over-budget is to change your mind on materials halfway through. Resist the urge to make changes as the process goes on. When you formulate a plan and a budget, stick to it; remember, your plan and budget were formed after careful consideration, whereas last-minute changes are likely to be impulsive or ill-informed.
It’s important to keep in mind that kitchens have evolved from being a utilitarian section of the home to one in which occupants spend a lot of their time and tend to set a high value on its appointments. Once you’ve formulated a plan, set a budget, and have both ready to present to a contractor, then it’s time to focus on the details and actual additions or replacements. Next week, we’ll explore exactly what we did with our new property and how certain additions add value to a home without breaking the bank. Until then, be sure to sign up for our email list for continued updates, and don’t forget to follow us on Facebook and Twitter!
– Get It Right Solutions