Depens upon what you add. If it is an area where the demand is for 3 bedrooms. You find a 2 bedroom and add a bedroom you may increase the value buy more than your cost.
But if you over build for the area you will not even recover your cost.
As an investor, you will want to make whatever changes are necessary to enhance the profitability of your investment, but be aware that the cost of the improvement will often not be totally recaptured in an appraisal or sale of your investment.
Typically, neutral decorating (new carpet, paint, wallpaper, etc.) is money well spent. Larger improvements, such as additions and four-season porches, must be considered on a case-by-case basis. Be sure to take a look at the neighborhood when planning changes and try to keep improvements in line with other properties in the area.
Customarily on an investment standpoint, your repairs - improvements only should make your subject property presentable to the retail market.
The worst thing one can do is overbuilding for the area as lacashman stated. Overbuild = Investment loss!
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I am looking to do only things that will make my investment a long term investment.
I bought four row houses that have been neglected for years. I have been wanting to wrap them in vinyl, vinyl windows and an insulation job to. It will look like it will cost me around 12,000 for all four to be done.
Depens upon what you add. If it is an area where the demand is for 3 bedrooms. You find a 2 bedroom and add a bedroom you may increase the value buy more than your cost.
But if you over build for the area you will not even recover your cost.
pnowak1,
lacashman is correct a lot of variables determine what return you get on your improvement project.
I have found the following site helpful in determining ROI (Return on Investment).
http://www.411homerepair.com/contractor/estimatorTool.shtml
As an investor, you will want to make whatever changes are necessary to enhance the profitability of your investment, but be aware that the cost of the improvement will often not be totally recaptured in an appraisal or sale of your investment.
Typically, neutral decorating (new carpet, paint, wallpaper, etc.) is money well spent. Larger improvements, such as additions and four-season porches, must be considered on a case-by-case basis. Be sure to take a look at the neighborhood when planning changes and try to keep improvements in line with other properties in the area.
Customarily on an investment standpoint, your repairs - improvements only should make your subject property presentable to the retail market.
The worst thing one can do is overbuilding for the area as lacashman stated. Overbuild = Investment loss!
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I am looking to do only things that will make my investment a long term investment.
I bought four row houses that have been neglected for years. I have been wanting to wrap them in vinyl, vinyl windows and an insulation job to. It will look like it will cost me around 12,000 for all four to be done.
Joel
The following sites will help on the cost.
http://www.siding4u.com/vinyl_siding_cost_analysis.htm
http://www.1st-vinyl-siding.com/house-siding-quote.htm
http://www.servicemagic.com/roofing_siding_and_gutters/cost_of_siding.html
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