Remember how our initial moving
budget guess was hovering around the $10,000 mark? Well, today we decided/figured out it will be around double that, haha… But – and this is a huge but – we’ve since decided to invest a lot more into our current home in order for it to reap much bigger rewards in the future. So it’s not like we’re just throwing away money or anything, it’s just more of a delayed gratification type deal now ;)
Here’s what our new renovation costs will look like in our current home/investment property:
- $11,000 — Hard wood floors throughout the entire house, minus the basement. REAL hardwood too, not laminate which we were initially considering but had to nix due to the setup of our main level (too many angles and extra steps and railings complicating everything).
- $1,100 — New carpet in our basement and steps leading down to it
- $5,900 — Completely updated kitchen including cherry cabinets AND all granite counter tops. Which we have like 3 of, haha… (our kitchen has this cool little bar area that’s pretty sweet :))
And here are the reasons for it:
- We want to get renters in the door faster, and stay longer. So we don’t lose money with an empty house on the market for months and months at a time…
- We want to avoid having to re-carpet the entire home every few years! Which would cost $3,000 or so more to do each time over the $1,000 for just replacing the basement (which we may also turn to wood later if we think it makes sense at the time – it’s a bit more expensive to do down there on the colder cement than regular living areas)
- And more importantly, we want to get our house in better shape to sell one day! No more outdated kitchen circa 1980 or plain jane flooring to scare away those fishies. Nope. It’ll be one sexy little house for a lucky family to move into if/when we decide to sell it later on. And if we end up not doing so, it means our investment strategy is working – woo!
So a total of $18,000 to get our house looking slick and with the times again. And we got SUPER lucky with our contractors too who were referred to us by our neighbors (who were referred to by THEIR friends).
I was literally on the phone with Home Depot getting a quote (which, btw was almost DOUBLED!), when I noticed loud banging on our walls and all kinds of weird stuff happening. I get off the phone with them, walk on over to see what the fuss was about, and there’s a crew of like 5 guys in there rebuilding their entire kitchen! Later that night I chatted with my neighbor and said that out of all 5 places they got quotes from to redo it, this crew was by far the best when it came to price. Which of course worried him about craftsmanship and other (illegal) concerns, but it all checked out in the end and I ended up calling and locking in the company myself :) Talk about impeccable timing…
That being said, $18,000 is still a ton of money at the end of the day – regardless of what others would have charged us. And that’s AFTER us knocking down a little over $1,000 to take up all the carpet ourselves and knock down all our kitchen cabinets/surfaces too – something we’re going to try for the first time ever ;)
You mix that $18k with our moving costs from last weekend ($400) and what we have to put down for our leasing costs of where we’re moving into ($3,900), and you’ve got yourself a cool egg of over $22,000 in making this move happen so far. Did NOT see that one coming! But again, it’s the start of a much freer, BETTER, life for us or there’s no way we’d even consider any of this. (AND we can write a lot of it off now that it’s an investment property!!)
That was pretty much my answer too when someone on Twitter asked me if we were worried about having bad tenants in our place and breaking everything. YES! We are most def. worried about that kinda stuff (which is another reason we’re using a property manager to help us sort through and do background checks/etc on applicants), but at the end of the day we’re MORE worried about not enjoying our lives and taking action on stuff. We could sit at our place for another 5 years super easily if we wanted to – just like the previous 5 years – but in our hearts of hearts we know it’s time to move on. So at the very least, even if all our hard work and money throwing doesn’t pan out all the way, we’ll still be starting a new life in a new area and reaping the benefits :) Which we’re SOOOO excited for!!
This also shows the power of saving up a lot of money too. Like straight up cash, which some of you liked to give me a hard time about over the years when it was just sitting there doing nothing ;) All that money is for times like these when you need it! Big life-changing events to conquer without being held back by the financial side. I may not always know when exactly I’ll need it – or for what – but you can def. see the power in sitting on it for when opportunity meets action.
And in a weird way, it actually feels kinda GOOD to spend such a large chunk like this too! I mean, we do it a lot on small things here and there of course, but I often wonder if I’ve become too much of a hoarder for my own good ;) I think we can safely rule this one out for a few years now though, haha…
Operation move out in full effect, baby! Wish us luck that everything goes smoothly this week. Our place is completely empty now waiting to be sex’d up, so hopefully we made the right call in the end… And if it turns out we didn’t, well, you’ll have some interesting articles to read here in the future! It’s nice to know we can always fall back on that ;)
(Photo by Magic Madzik)
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!