Posted by Jimmy on December 27, 2005 at 08:30:48:
there is no answer that will be universal. every property is different, even for houses sitting next door to each other. there are no rules of thumb. experience and more experience will help you fine tune your judgment on these decisions. until then, expect to make some mistakes. hopefully, the hits will more than make up for the misses.
here are some thoughts
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rehabbing for resale to an owner-occupant is VERY DIFFERENT than rehabbing for a rental property (whether you intend to retain the rentai or sell it to an investor).
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know your neighborhood. converting a garage into an extra bed/bath may be a grand idea in a working class neighborhood, where 75% of the houses are rentals. but a horrible desicion in a neighborhood where most folks are owner-occupants.
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neat and tidy landscaping can really help the curb appeal, and does not necessarily cost a lot of money.
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adding a window in dark corners of a house can be an inexpensive way to convert the worst part of a house into the best part.
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while on the subject of “worst features.” when looking at a property, think about the features/attributes that are really cool, and the ones that are yucky. try to fix, repair, improve the yucky. Example One: have a house in Houston with a 350sf covered back porch, facing north. was always dark, collected junk, ususable most of the year because of the heat and humidity. definitely the worst part of this house. we enclosed the porch, and incorporated it into the den and one of the bedrooms. now it is the best feature of the house.
Example 2. my house. laundry room and big walk-in closet/pantry was located between the garage and the kitchen. but laundry room and pantry were really in the garage, and not in the air conditioned comfort of the house. it get hot here in Texas, and the laundry room was a miserable place to be. plus, the pantry was so hot, it was only useable as a storage closet. so I removed the kitchen door to the garage, framed up a new door 6 feet out, and now I captured the laundry room and pantry “inside” the house. a HUGE difference. plus, it makes my kitchen look a lot bigger.
Here’s the point. think hard about each property. your decision-making will differ for each one.