Remodeling Worth Your Effort for Reselling?

Remodeling can be one of the biggest challenges you have ever faced in your entire real estate-investing career.

First, you buy the property. Then you need to plan if you are remodeling or not. If it turns out to be in bad shape, you need to remodel for selling the property later. Then comes the part where you need to plan on how to remodel it. You’ll need to choose what goes out and what stays in. And then the most difficult part is where you actually remodel the property.

If you haven’t done any remodeling before, by now, you must have sworn that you are never going to do that. It seems like a lot of work, right?

Yes, definitely, it’s a lot of work. But the question is “Is it worth it?”

I mean, is the effort and your cost of remodeling worth it when at the end you are just going to sell the property?

There is no definite answer. But what I can tell you is the fact that whether it is worth it or not depends on the property itself.

If you can’t get your head around that, wait till I explain it. But first things first, why do you even need the answer?

When you get started with the remodeling, there will be a time when you’ll think that it’s just not enough.

So, what should you do in that case? Well, you just need to think about the property.

Coming back to the answer. This is how you can determine if the efforts and cost of remodeling are worth it.

Think of it like any other service or job. When you get a job proposal, what do you do?

You check if the hours you need to dedicate to the job is worth the pay or not. Same goes for the real estate industry remodeling.

When you remodel the property, get an estimate of the total cost. Add it with the price you bought the property for. Then do some research. Try to get a number for your expected value for the property after remodeling.

Once you get the number, calculate the expected profit. Now you need to compare your efforts with the profit. The math is simple. If you think your efforts are worth your profit, there shouldn’t be any hesitation in remodeling the property.

So, the outline is, go with the remodeling only if you think you can sell the property for a much higher rate than you bought it for.

Honestly, not all properties will be worth it. That’s why you need to do all the calculations before you even go for the deal. Only buy properties that need remodeling or renovating if you think the cost will be covered with the post-modeling value while keeping a good amount aside as a profit for all your efforts.

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