One of the first rooms we replaced the carpet in was our sitting room, the first room you see as you walk into the house.  My parents basement had some water damage so I claimed a section of carpet that had not been ruined.  I thought it would fit perfectly into this sitting room.

If you recall the kitchen over haul, we also replace the wood flooring and removed the railing that led into the sitting room and updated railing around the stairway.  I had also applied some color to the walls, you can find the color details here.  That seems so long ago now, it’s been almost 5 years.

So back to the carpet, I just visually guessed the dimensions, assumed it would fit.  I tore out the old carpet, rolled out the new and walla, it was to small!  I couldn’t believe I could possibly be wrong.  So my free carpet became free to someone else and to the store I headed.

I love the new carpet better than the other of course, I just hadn’t planned on buying any.  Have you ever just guessed how big a space is?  Did it work out for you?

Here’s a shot of the stairway after the kitchen reno.

It’s a standing joke amongst my husband and I that his Town House was his wedding gift to me.  He gave me the keys and the landlord responsibilities the minute he found the opportunity.  We’ve been renting this 2 bedroom, 1 bath end unit with a double garage for a few years now and recently come to terms with it’s value and we are ready to rip the band-aid off and move on.

It was a quick decision and with spring apon us and the tax credit nearing it’s end I wanted to get it on the market before the following weekend with a budget of $2000.  It’s amazing how much you can do with $2000 when getting your home ready for the market.

It’s always difficult as a home owner to know if they will see that investment back, it’s important to consider why you would make the changes.  In my case this unit will sit empty on the market until I find a buyer so I want my unit to be the most attractive unit.  I want it to be the next unit sold in the complex, not the 8th.

The unit was built in the nineties and my husband, bachelor at the time had zero interest in making updates?!?!  Since this wasn’t my first rodeo I new exactly where to spend my dollars to get the most bang.

Budget and Before and Afters as follows:

$200:  8 gallons of paint (entire unit)

$340:  New light fixtures out with the gold in with the silver

$1300 New Carpet through out.

$120 Misc. Home Depot/Supplies

I wanted my budget to have room to do something “special” or something that would make our unit stand out from the others.  With $300 I was able to install a beautiful modern back splash in the kitchen tying everything together.

These changes have made our unit much more appealing to the market and turn key for the first time home buyer.

Total Cost:  $1970

Investing in a rehab home is an income producing opportunity I pursue in my free time.  It can be a tough job; if you’re interested in learning first you need to understand one question “What makes a good real estate investment?”

The answer isn’t necessarily simple – buy low and sell high.  It’s a simple answer, if you can do this it’s an investment.

Determining what makes a good real estate investment are the factors that allow you to by the home at a lower price and then sell it at a higher price.

One of the best factors in allowing you to buy a home at a lower price is a bad economy.  We’re witnessing this today as people are facing foreclosures and selling their homes as a short sale.

A second factor is condition of the property.  If the home needs a new roof, plumbing, electric, paint, carpet, updated kitchens and bathrooms it’s very possible these items are unattractive and can drive the price of the property down.

Remember though, in order to realize a profit you need to sell it at a high price than your investment.

I usually choose to rehab a home by putting in money through new paint, carpet, and landscaping.  These help me create value in the home many times over the cost of painting, carpeting, or landscaping.  I also suggest working with an agent familiar with proper staging to make your home the most attractive to buyers.

In a real estate market up or down, investing is an exciting and profitable venture if done correctly.  Remember buy low and sell high.