Ready to renovate? Join the plethora of investors who are snapping up Boston townhouses. The sweat equity of a townhouse renovation makes this type of rental property an attractive and affordable option for supplemental income.
Finding the Right Townhouse
When you are looking for a fixer upper, your first priority is price. Taking time to renovate existing housing benefits the community by keeping buildings vibrant and well cared for. Investors are breathing new life into city neighborhoods with renovation schemes.
First it is important to decide on a budget. Think about what your maximum price point is. How much sweat equity (doing jobs yourself) can you feasibly complete? Have an objective third party help you evaluate your home renovation skills. Decide which jobs you can complete at a high level of competence. Hire out jobs that are beyond your capabilities. Once you know what your threshold is, you can start looking for a townhouse.
Secondly, what is your purpose for renovation? Do you plan on renovating the entire home, or just a basement that you intend to rent out? Deciding clearly on your purpose will streamline the renovation.
Purpose will direct where the majority of your renovation budget will go. Investors have many options when it comes to renovation. Whether a property will be entirely for rental, or if it will be both a residence and a rental, are things that must be decided upfront.
Location and primary purpose of the townhouse go together. These are important criteria to consider when deciding which fixer-upper to buy. Once your purpose is clear, location will naturally become more important. Commuters will want a place near work, and short term rentals will be more profitable if they’re near city landmarks and transportation hubs.
Beware of Renovation Pitfalls
First-time investors and renovation veterans alike are susceptible to certain pitfalls. Details like forgetting to account for state and federal taxes on profits if the property is renovated and then sold can affect your budget. If the property is rented, know which category it will fall under when registering with the city of Boston. Contact us for more information on successfully completing a Boston townhouse renovation.