Hello guys!!

I'm bidding on a homepath first look and it will be my primary home.  If I win the contract, I will not have enough reno money for all the bells and whistles.  

If you had an opportunity to acquire your dream home, how would you approach the renovation in a phased approach?

Would you hire an architect to do plans and follow that or would you do major systems first (HVAC, ZONE HEATING, ELECTRIC, PLUMBING, ROOF, ETC).

Bottomline, which would you make sure was done 1st, 2nd, 3rd? How would you start if you only had $100k and the renovation to completion is about $175k. 

I want to be smart and not have to redo previous work when I, overtime, obtain more money to finish renovation. 

Your advise would be greatly appreciated.

Thanks!!

Fannie Mae has a loan called “Fannie Mae HomeStyle loan”, that lets you finance the home and the renovations with only 5% down on a primary home, and let’s you finance up to 50% of the homes value for renovations. I would look into that as an option for your primary home.

I would start by meeting with contractors, and evaluate the updates/repairs, meet with multiple from each trade and compare thoughts. Once you have actual costs, then you can start determining what can be done in each phase and what is of immediate concern so on

Originally posted by @David Martinez :

Fannie Mae has a loan called “Fannie Mae HomeStyle loan”, that lets you finance the home and the renovations with only 5% down on a primary home, and let’s you finance up to 50% of the homes value for renovations. I would look into that as an option for your primary home.

Thanks for responding. I'm applying for a FHA/203k, but only qualify for $125k over purchase price. I'm ffriad thats not enough to renovate.

Originally posted by @Michael Gessner :

I would start by meeting with contractors, and evaluate the updates/repairs, meet with multiple from each trade and compare thoughts. Once you have actual costs, then you can start determining what can be done in each phase and what is of immediate concern so on

Thank you!! I do have a contractor that I've used before, but they are on the high side. 

Interviewing multiple trades sounds really good. Not sure if FHA/203K would allow multiple licensed trades as opposed to a licensed General Contractor.

Get bids from at least 3 subs on the work you want to have done. However; if you aren't going to act as your own GC and must hire a general, do the same thing, and get a bid from them that covers the work you need done, then compare.  Be sure to check licensing, bonds, and references. Prioritize on what is critical compared to what you'd like to have done, and do jobs in that order. As to an architect, I doubt there's anything you will need an architect for. If you need to rearrange space, a draftsman can draw plans, though I doubt even that would be needed. 

Originally posted by @Karen Margrave :

Get bids from at least 3 subs on the work you want to have done. However; if you aren't going to act as your own GC and must hire a general, do the same thing, and get a bid from them that covers the work you need done, then compare.  Be sure to check licensing, bonds, and references. Prioritize on what is critical compared to what you'd like to have done, and do jobs in that order. As to an architect, I doubt there's anything you will need an architect for. If you need to rearrange space, a draftsman can draw plans, though I doubt even that would be needed. 

Thanks so much....

Hi @Kimberly H. ,

How long are you planning on phasing out your renovation? Do you eventually want to rent or resell, or just build equity and appreciation in the market and enjoy your home?

I would start by establishing a goal and timeline - that should help clarify priorities.

Some repairs, like a new roof, might only last 20 years. Appliances, maybe 10-15 years, HVAC also will last about 10-15 years. Similarly, what about safety, comfort, and utility costs while you live there? You need a good roof and you need safe electrical (with enough amperage), and new appliances and a new, efficient HVAC unit and insulation will save you annually in utility costs. So will new windows and tight doors with weather stripping. These are all pretty major costs compared to carpet or paint, though. If money is tight and it's your personal home, it's a balancing act of being happy with the way your house looks while you live there and saving up for big ticket expenditures.

If you plan on reselling the home in 5 or 10 years, think of how a potential buyer will see the property. Chances are, they'll want to redo cosmetic details anyway to suit their taste and factor that into their offering price already, but if they also see the need for new systems in the house, they might lowball an offer.

I would always recommend fixing the guts and bones of a house before putting new paint on the walls, but you have to be happy living there in the mean time.

Lastly, If you want to make structural changes to the house - moving walls or stairs, building additions, adding a deck or roof deck - check with your local permitting office to see if you need a structural engineer or architect to stamp drawings, and see if you need a licensed contractor to submit for the permit. If you're doing work in a city it's likely that you do, but everywhere is different.

Originally posted by @Eike Maas:

Hi @Kimberly H.,

How long are you planning on phasing out your renovation? Do you eventually want to rent or resell, or just build equity and appreciation in the market and enjoy your home?

I would start by establishing a goal and timeline - that should help clarify priorities.

Some repairs, like a new roof, might only last 20 years. Appliances, maybe 10-15 years, HVAC also will last about 10-15 years. Similarly, what about safety, comfort, and utility costs while you live there? You need a good roof and you need safe electrical (with enough amperage), and new appliances and a new, efficient HVAC unit and insulation will save you annually in utility costs. So will new windows and tight doors with weather stripping. These are all pretty major costs compared to carpet or paint, though. If money is tight and it's your personal home, it's a balancing act of being happy with the way your house looks while you live there and saving up for big ticket expenditures.

If you plan on reselling the home in 5 or 10 years, think of how a potential buyer will see the property. Chances are, they'll want to redo cosmetic details anyway to suit their taste and factor that into their offering price already, but if they also see the need for new systems in the house, they might lowball an offer.

I would always recommend fixing the guts and bones of a house before putting new paint on the walls, but you have to be happy living there in the mean time.

Lastly, If you want to make structural changes to the house - moving walls or stairs, building additions, adding a deck or roof deck - check with your local permitting office to see if you need a structural engineer or architect to stamp drawings, and see if you need a licensed contractor to submit for the permit. If you're doing work in a city it's likely that you do, but everywhere is different.

Thanks so much for your great advice.  This will be my forever home.  You will have to drag me out of it.  I just got word from Homepath that I won the bidding with contingencies.   I accepted!

I'm hoping I can get everything done in 1-2 years.  Again, it's a huge house, so I know it will take well over 125K to renovate.

I love your advice about fixing the guts and bones and also you outlining the major systems.  Based on all the advice I have a clear path on how to approach this.  I'm going to try not to get all warm and fuzzy about "cosmetic".  I want the home to be safe, solid and functional while I renovate to have the "nice" things.   Yes, I do have structural changes to make as well and we do need permits in my city.

You guys are great!  The more advice I get the better.  Helps with my vision.  

Congrats @Kimberly H. !! I'd love to see how it turns out as you renovate!

Originally posted by @Account Closed :

Congrats @Kimberly H.!! I'd love to see how it turns out as you renovate!

Thanks!  I will definitely post pictures and get more advice.