Comments on: The Siren’s Song that Led Me Into the Rocks of Rehab Over-Spending http://www.biggerpockets.com/renewsblog/2009/11/22/real-estate-rehab-over-spending/ Learn, Network, Invest Sat, 11 Feb 2012 23:51:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Justin Piercehttp://www.biggerpockets.com/renewsblog/2009/11/22/real-estate-rehab-over-spending/#comment-75636 Justin Pierce Mon, 23 Nov 2009 13:13:51 +0000 http://www.biggerpockets.com/renewsblog/?p=8843#comment-75636 Steve,It is a very fine line. What people need to know is there are no rules to this game. I over-improve all the time. I will often do an improvement that I know I will only get 50-75 cents on the dollar, but I do it for marketing or some other legitimate reason. As long as there is a reason to justify an improvement then I don't consider it over-improvement. I just got a little carried away on this deal as I will show next week. There were many improvements I got ZERO return on. That hurts.Thanks for your comment. I really apprecait you taking the time to read my rant.Justin Steve,

It is a very fine line. What people need to know is there are no rules to this game. I over-improve all the time. I will often do an improvement that I know I will only get 50-75 cents on the dollar, but I do it for marketing or some other legitimate reason. As long as there is a reason to justify an improvement then I don’t consider it over-improvement. I just got a little carried away on this deal as I will show next week. There were many improvements I got ZERO return on. That hurts.

Thanks for your comment. I really apprecait you taking the time to read my rant.

Justin

]]> By: Stevehttp://www.biggerpockets.com/renewsblog/2009/11/22/real-estate-rehab-over-spending/#comment-75624 Steve Mon, 23 Nov 2009 07:23:11 +0000 http://www.biggerpockets.com/renewsblog/?p=8843#comment-75624 Justin, I think you make some great points. This is an issue I really struggle with. Say for example, we have a 3/1 house. It would take $7,500 to add a bathroom and it would increased the value of the house $7,500. Most of the time I do it to get a quick sale and open the market up to more buyers.Sometimes I justify over-improvement by thinking if the market changes I will have the most sell-able property on the market, which helps me sleep at night. Likely, I will notice downward trends again before the average buyer does. It's a fine line, if I knew what the market would do from March - October I would have a lot more properties and do very minor repairs. .-= Steve´s last blog ..<a href="http://buildbankroll.com/2009/11/flip-that-mansion-latest-project/" rel="nofollow">Flip that Mansion – Latest Project</a> =-. Justin, I think you make some great points. This is an issue I really struggle with. Say for example, we have a 3/1 house. It would take $7,500 to add a bathroom and it would increased the value of the house $7,500. Most of the time I do it to get a quick sale and open the market up to more buyers.

Sometimes I justify over-improvement by thinking if the market changes I will have the most sell-able property on the market, which helps me sleep at night. Likely, I will notice downward trends again before the average buyer does. It’s a fine line, if I knew what the market would do from March – October I would have a lot more properties and do very minor repairs.
.-= Steve´s last blog ..Flip that Mansion – Latest Project =-.

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