Upgrade Bathrooms and Kitchens First
Plan for the Unexpected
Depending on the condition of the property you are renovating, most experts recommend allowing for 10 to 20 percent overage on your basic budget for unexpected repair expenses. This can help you deal with damage and cosmetic repairs that may not have been obvious during your initial inspection. By creating a financial buffer to absorb these added expenses, you can create a renovation budget that offers the flexibility necessary to complete your project in a timely way.
Choose the Right Financial Arrangements
Renovating and reselling properties can be a profitable investment. In some cases, however, fix-and-flip arrangements may be harder to finance than other types of real estate acquisitions. Working with an alternative lender can provide you with added funding options for your renovations and can help you deal with the financial aspects of your project more effectively.
Remember Carrying Expenses
Property insurance, mortgage payments, utility bills and tax bills will continue to make demands on your available funds from the moment you purchase the property until renovations are complete and you have sold it to a new owner. Factoring these expenses into your overall project budget can allow you to enjoy greater peace of mind when dealing with renovations on properties bought for eventual resale.