Updated about 9 hours ago on . Most recent reply
Rehab advice on old 1800s farmhouse
I recently closed on an old farmhouse that was built pre-1900 with the plan to BRRR it. The house is solid structurally and in a great area that I expect to appreciate, but I need to replace plumbing, electrical, add a bathroom, and paint the entire house inside and outside. I have a contractor who gave me two options:
1) Do the things listed above - which is under the budget I set for the reno as part of the due diligence process
2) Do all the 'must-do' items, and also replace the roof (roof is 12-15 years old but passed inspection), vinyl siding, cover the existing hardwood flooring with LVP, and upgrade the kitchen - items that aren't absolutely necessary to do now, but would increase the appraisal and reduce maintenance costs in the future. This estimate is about $50k over my budget.
Doing option #2 would mean that I would likely need to leave more capital in the house in order to achieve the same cash flow, even with rental income being $100-$200/higher per month.
Is it better to do everything up front at once if you are planning to keep the house long-term, or to spread out over 5-10 years, even if it means a lower appraisal and lower rental income in the beginning? Welcome advice, other questions, and experience in this space, as this is going to be the biggest reno project I have undertaken to date.