Besides being a real estate broker, I have been a contractor in Las Vegas for a long time and have a great granite guy. If you would like, send me a note and I will send you his contact information. He has done several of the homes that we built or remodeled.... more
I am not aware of any record keeping and or projections when it comes to home remodeling.
What I can tell you is between my business partner and myself we own thirty homes in the Las Vegas Valley and manage a few hundred.
I can simply provide our numbers when it comes to remodeling our investment properties.
When we buy a property we look at the rate of return. ROI. If we by a home for $200,000. we ideally like to make $18,000.00 gross annually. If we purchased the property three years ago and it continues to maintain a stable rate of return we then look at investing more money into the property. The money we would invest would go to remodeling the property. Things such as:
1. New cabinets
2. Granite Counters
3. New flooring
4. Upgraded landscape.
We would invest this money after three years from the date of purchase only if we had the following:
1. Three years of steady return
2. We knew that by investing in a remodel and or upgrade would increase our ROI. (Could we raise the rent).
3. We plan on selling the investment and we could profit off of the upgrades and or it would shorten the amount of time the property was on the market.
We would calculate the amount of money we invested as follows:
Average cost of granite for 120 linear feet is just under $3,000.00 By spending $3,000.00 on granite we could raise the rent $100.00 per month we would make the investment. This is if we intended to keep the property as an investment.
If we intended to sell the investment we would only invest and or improve the home if we could minimally recapture the cost of upgrades.