Manage episode 282810158 series 2360121
Renovations on residential properties can bring massive returns, but they can also incur a lot of costs, and as investors, we need to be aware of those ahead of time.
Estimating the price of renovations can be tricky, especially for newbie investors, but knowing what we’re getting ourselves into is a vital part of staying on track. The question is, where do we start?
How can we get a better idea of the type of refurbishment we’ll be doing, and how can we calculate how much it will cost us? Are there any renovations we should be steering clear of?
In this episode, Ocean City Development’s construction manager, Jim Cooke shares how he approaches renovations in single-family investment properties.
"It’s important to know the level of renovation before getting started, because there are so many things you can do to so many properties if your goal is to make it perfect." -Tom Cafarella
Three Things You’ll Learn In This Episode
▪️ What to do before viewing a property in person:
Take a look at comps online before visiting a property. This gives us a good idea of the standard home in the neighborhood and can be used as a checklist when we do see it in person.
▪️ How to get a more accurate idea of the costs:
It’s never a bad idea to take a contractor along when viewing a property, especially when we’re new to renovations. Doing so will come at a cost, but the worst that can come from it is an informed second opinion that might just save us money in the long term.
▪️ The properties new investors should avoid altogether:
Major renovations can bring major returns, but only if we know what we’re doing. When we’re new to the space, our best bet is to stick with small, cosmetic renovations that carry minimal risk.
Jim Cooke is the construction manager at Ocean City Development. He deals with everything from smaller deals like fix and flips to bigger projects, and his day to day typically consists of going on scopes and creating renovation budgets.
To find out more, go to: https://www.facebook.com/jim.cooke.79025