Maximizing Return on Investment through Thoughtful Renovations

Lots of things to consider when renovating. The first thing you wanna make sure of is that it’s actually makes sense from a return point of view, right? spending $100,000 on a property to make $100,000 is not a great idea. But by spending the money, you get a return on that money. And when you spend more money and that return is not there, that means you are over capitalizing. So only spend enough money on that property where it actually gives you a return on your capital invested. You know, a lot of people who go renovate a property as their owner occupy property go down the the rabbit hole of spending way too much money on a property and it doesn’t make any financial sense, but they do it because they live there. So when you’re in renovating for investment, make sure there’s a return there. You know, you need to look at your return overall because it’s gonna increase the value of the property plus it’s gonna increase the yield and you need to combine both of those numbers to give you your actual net return. Obviously, it has depreciation benefits as well, which means that if you spend $100,000 on capital improvements on a property over the next 30 years, you can paying that back in your tax return, which means you get some of the money back which is also a great thing. You need a factor in all of your costs when You’re renovating when you’re renovating generally you can’t have tenants on the property which means it’s gonna be vacant so that’s gonna have some costs attached to it etcetera etcetera so we do a lot of this stuff we buy we renovate we build we do a lot of work on on properties and at the moment we see quite a big disparity between what we can buy something that’s completely dilapidated or completely unrenovated which a lot of people won’t look at especially under occupied buyers won’t look at the property because they’re like oh we can’t move in we gotta renovate a building’s expensive blah blah blah blah blah so we see a really good arbitrage there where we could buy a property do the work to it do it without much fuss at all that same property we could give it back to that buyer who said they wouldn’t buy it now it’s beautiful and like oh my gosh I love this property.