Sweat Equity…Yes Please!
Nick and I are huge proponents of projects that build major sweat equity into your home quickly. Our goal with any home that we buy is to find the worst house on the best block, or at least as close as we can get. It sounds cliche, but it’s the best advice you can possibly listen to when it comes to buying a house.
Here are a few reasons why:
- You can change pretty much anything in your home with time and money, the only thing you can’t change is its location.
- Renovating an ugly house in a beautiful neighborhood gives you the freedom to move at any time and still make a profit on the sale after closing costs (though we wouldn’t recommend it in less than 2 years).
- No matter how well renovated a house is, you are bound to have a difference in style than the previous owners. The trouble with this comes when you decide to change perfectly good granite, cabinets or flooring to update it to your taste. This adds absolutely no equity to your house and eats away at your ability to make a profit on the sale of your home.
We’ve renovated two properties in the last three years, selling one at a steep profit after only 14 months of living in it. The profit from this single sale paid for my MBA outright and allowed me put a down payment on another house in Florida. Our current renovation project is our place in Jax Beach, which we are hoping will be our forever home. We’ve recently had it reappraised, after living in it for 1 year. If we were to sell it now, we would net more than we did on our first home sale.
If it’s not your goal to build wealth in your house immediately, but to pay down your loan over time and grow with the market, then buying a move-in ready home is definitely the best choice for you. It’s all about your priorities and what you want out of a home. But if you’re willing to dedicate the time, along with your blood, sweat and tears to building profit, then we can share with you what we did to make that happen.