5 Secret Money-Saving Renovation Tips for Newbie Income Property Investors
Renovating a property can easily get out of hand and get you spending more money than you should be spending. The key to successful income property investing is sticking to the budget you’ve planned out so you can get the most ROI possible at the end of the project. However, if you don’t have enough experience when it comes to managing a renovation, it’s easy to fall into the traps that lead to overspending. With that said, here are five money-saving tips that will help newbie income property investors keep their pockets safe.
#1 Do Your Own Demo
If you’re trying to stay within budget or even save extra money, it’s a good idea to do your own demolition at the beginning of the project. Believe it or not, knocking down parts of a home can be expensive. One way to save some money is to do it yourself. However, make sure to do so carefully and beware of wiring and other components that you don’t want to mess up while knocking everything down. Most importantly, do not knock down any load-bearing walls or plumbing, as that could cost you more money in the long run.
#2 Use Your Contractor’s Sources
You’d be surprised how often contractors have stock left over from other jobs they worked on. Feel free to ask your contractor if they happen to have left over flooring material or other materials such as paints. That way, you can save money while also making use of resources that would otherwise end up in trash. However, make sure the materials are still decent and usable - you don’t want to use horrible paints or ridiculous flooring tiles just because they’re cheaper. If they look good enough to fit the property, then go for it!
#3 Do the Cleanup Yourself
Just as you saved money by doing the demolition at the start of the project, you can save more by cleaning things up at the end. Help clean up the site every day and do minor tasks such as painting or sanding. All of this will take the weight off of the contractor's shoulders and help you save extra bucks that can be invested elsewhere. However, keep in mind that this is doable for beginner investors. As you start growing your portfolio and dealing with multiple properties, you won’t have time to jump in your work clothes and do the cleaning. At this point, your income will allow you to outsource it all.
#4 Don’t Move the Kitchen Sink
Even though moving the kitchen sink can allow you to create a better floor plan, it can be quite expensive to do so. If you want to save money, avoid tapping into these deep renovations and keep things like kitchen sinks and toilets in place. Messing with these things will take away time and often a lot more money than you think. Hence, it’s best to just leave it and look for ways you can make the best out of the current layout of the room.
#5 Buy Building Supplies at Auction
Last but not least, a great way to save money when renovating an income property is to look for affordable materials. I’m not saying go for the cheapest materials out there and risk quality but look for good deals and decent prices. You can often find those at auctions where, if you’re lucky, you might get everything you need at a lower bid. Used materials are also a good way to save some cash, just make sure the condition of the items is acceptable. Remember, don’t sacrifice quality.