How does renovating a condo work?

Question

Abel Curiel · Answer

Hello Stephen,

As long as the condo is approved by fannie mae (or FHA - for 203K), you can get a renovation loan for the purchase and kitchen/bath updates.

If you're getting a conventional loan and paying for renovations out of pocket, the construction shouldn't affect the loan. The main things to consider in this scenario would be the as-is value and ARV.

As far as typical cost, this will depend on materials used and can vary from contractor to contractor. We recently had quotes for a Brooklyn apartment Kitchen and Bathroom renovation ranging from $15,000-20,000.

Timing will depend on the building's approval process for contractors. As long as your contractor is licensed, bonded, and insured, it shouldn't take too long to get the project approved. Demo, reno, and clean-up could be at least 1-2 weeks - again, this will vary from contractor to contractor.

My recommendation would be to have a contractor accompany you for your showing today and next week. You may also want to offer to pay them for their time. Contractors prefer to see the project once its under contract or has an accepted offer but compensating them for their time will help you get a soft quote prior to going into contract.

All the best!

Abel

Michelle Pepe · Answer

When you say condo - you mean you own the inside and HOA or someone else owns the outside?

Stephen Kern · Answer

@Abel Curiel thanks for this response! Would you happen to know any trustworthy contractors you could recommend for work in Manhattan

Jonathan Klemm · Answer

Hey there @Stephen Kern - When you are doing a renovation in a condo typically the building engineer runs the shows (at least here in Chicago).

First step is to get a copy of the HOA bylaws and see what can and can not be done.

Some cost considerations to take into account:Is there a service elevator, parking, any particular finishes that are required, make sure to find contractor that has worked on condos before etc.

You can 100% get a renovation loan like the FHA 203k or Homestyle, which I highly recommend.

Abel Curiel · Answer

Absolutely, sending a PM!

How does renovating a condo work?

Most Popular Reply