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Dogs, Cats, And Horses... We Love Them All!
We have a long history with domesticated animals and even the nay Sayers can't deny their roll in society past and present.
There is evidence that as long as 10,000 years ago the Native Americans had domesticated dogs as depicted in early rock...
Fixer Uppers - Build Your Own Equity
1)Newer Homes Less Than 5 Years Old - Abandoned, neglected in
foreclosure will need minor repairs repainting, carpet cleaning.
Some appliances may be missing. The best way to increase your
equity is based on how much of a discount is the bank...
New York Code Orange Jaisini new art series
New York Code Orange Jaisini new art series The creativity of Jaisini is not designed to be preaching or too critical. Paul Jaisini reached his level of mastership to know exactly that life is worth living to look in the future having no...
Poster, Print or Painting. Where Are You Going To Put It?
If you are redesigning or decorating a room, or house, care has to be taken where your piece of art is to be displayed. Even if you have bought a picture on impulse there are a few tips that will not only enhance the picture but its...
The Realistic Masterpieces of Mr. Slade
Digital painting is really hype nowadays. Digital painters are also rampant. Their works are exhibited everywhere we surf. But one name rose among others. This guy is really great when it comes to this fascinating craft. His works are realistic, you...
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Fix and Flip: What To Fix
You've bought a house, a fixer-upper you can make some money on. What improvements and repairs should you make? First of all, you need to know this before you buy, as I explained in another article. Before and after you buy, though, you need to have some simple rules with which to start analyzing possible fixes.
Return On Investment
A young couple was very disappointed when I told them there house was worth $110,000. "We just put $40,000 into remodeling the kitchen!" they told me. I looked at the kitchen. It was nice. They had added $10,000 in value to the house by spending $40,000. This is a classic example of a bad return on investment.
With fixer-uppers, you have do things which give the most "bang for the buck." Aim for a three-to-one return on improvements. If you're going to resurface the driveway for $1000, it better raise the value of the home by $3,000. Even when you're just guessing, keep this three-to-one formula in your head, if you want to invest safely.
How To Fix A Fixer-Upper
With things like new curtains, you can't really estimate the increase in value. What you can do, though, is group together the many small repairs and improvements you are considering, and imagine how the house will look when you are done. Then you can estimate whether you will have increased the value enough to justify the cost.
It often is in the small details that you'll get the best return on investment, so look at these first. A new mailbox, flowers on the porch, a raked yard and trimmed trees - $30 total if you do the work yourself - can make a big difference in the first impression potential buyers have. First impressions are important.
Other small investments that pay big include shiny new switch covers (less than $1 each), shelves,
a birdhouse, new doorknobs, new light fixtures, curtains, new rocks or wood chips on outdoor paths, new faucets, new woodstain on decks, and general cleaning. Stand in front of the house and imagine what it might look like with various small improvements (flowers, wood-rail fence, birdbath, etc.).
The Big Fixes
Obviously, there are things that just have to be repaired. The basic systems must function. Improvements, though, should be subject to the three-to-one rule. You may have to get creative here. An investor friend of mine once had a wall put up, and for less than $1000 created a new bedroom, probably raising the value of the house by $8,000. Now that's a good return on investment.
Bathrooms and kitchens are important. A $1000 updating of a bathroom can add $4000 in value to a home. Spend $2000 wisely in the kitchen (New fridge, re-finish the cupboards, add a garbage disposal, etc.), and you can add $8000 to the sales price of the house. Look for changes which are most universally valued (don't paint the kitchen pink because YOU like that color), and be sure you get a decent return on investment.
Depending on the fixer-upper, there are many potential improvements that can be worth doing. These include adding a carport, new doors, fences, gazebos, sheds, painting, carpet, benches, a new closet, a new toilet, a new stove, a shower/tub surround, and trees or bushes. The bottom line is the bottom line: be sure anything you do returns more than you spend, preferably three times as much.
About the Author
Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
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