Should You DIY Investment Property Renovations?

Whether taking on a fix-and-flip project or renovating a buy-and-hold property to earn rental income, it’s essential to have a solid strategy in mind. Some investors buy a property and leave all renovations to the professionals to ensure they’re high-quality and compliant. However, some investors have the skills to DIY investment property renovations. Today, we’re reviewing when renovations are needed, the pros and cons of DIY improvements, and when to call in the professionals. 

Contents of This Article: 

• When Are Property Renovations Needed?
• Should You DIY Investment Property Renovations?
• Pros and Cons of DIY Renovations
• When to Call in the Professionals for Renovations
• Find the Right Lender for Your Investment Property

When Are Property Renovations Needed?

Property renovations are needed at various times depending on the property’s age, condition, and intended use. Some of the most common scenarios where renovations are needed include the following. 

1. Fix-and-Flip Projects- Investors who take on a fix-and-flip usually use Maryland rehab loans to renovate a property to bring up the value and quickly resell for profit.
2. Before Listing or Selling- Renovations can increase a property’s market value and appeal to potential buyers. Upgrades like kitchen remodeling, fresh paint, or bathroom upgrades can deliver strong returns.
3. Between Rental Tenants- Vacancy periods can be a good time to address repairs, update finishes, or improve amenities without disrupting any tenants.
4. The Property is Outdated- If appliances, flooring, or fixtures aren’t functional, renovations are usually necessary to maintain the value of the property or attract quality buyers or tenants.
5. Safety or Code Violations- Immediate renovations are necessary when issues arise that violate building codes or cause safety risks. For instance, faulty wiring, mold, or structural damage must be taken care of immediately.

Should You DIY Investment Property Renovations? 

Yes, you can DIY investment property renovations. However, it’s not always the right decision. It ultimately depends on the type of project, your skill level, and how much time you’re willing to invest. 

DIY renovations can save money on labor costs, especially when it comes to cosmetic upgrades like painting, installing new fixtures, or landscaping. However, more complex tasks like electrical work, plumbing, or structural repairs are best left to licensed professionals. That way, you can ensure safety, compliance with building codes, and proper permitting. 

Additionally, DIY renovations can take longer and may delay your timeline, which can be an issue for fix-and-flip projects. So, if you have the experience, tools, and time, DIY can be a smart move. 

Next, we’ll review some of the pros and cons so you can decide whether or not this is the right choice for you. 

Pros and Cons of DIY Property Renovations

Doing property renovations yourself has several pros and cons. Here are some of the main points to consider if you’re thinking about taking on a fix-and-flip project or renovating a property that will attract tenants or sellers. 

Benefits of DIY Investment Property Renovations

• Saving Money- Doing the renovations yourself can significantly reduce labor expenses and increase your profit margin.
• More Control- When you’re in charge, you have complete oversight of the renovation process, materials used, and the overall timeline.
• Skill Building- DIY projects help you gain experience and knowledge for future investments or renovation projects.
• Personal Satisfaction- Completing a renovation with your own two hands is extremely rewarding and a huge confidence booster.

Disadvantages of DIY Property Renovations

• Time-Consuming- DIY projects typically take quite a bit of time, which can delay leasing or selling and impact your return on investment.
• Skill Limitations- If you don’t have much renovation experience, it can lead to mistakes or safety hazards.
• Code Compliance Issues- Electrical, plumbing, and structural work typically require permits and licensed professionals to ensure compliance.
• Hidden Costs- Mistakes or delays can result in unexpected expenses that eat at your initial savings or budget.

When to Call in the Professionals for Renovations

While DIY investment property renovations can save money, there are certain situations where hiring a professional is a smarter and safer choice. After all, licensed contractors bring experience, efficiency, and knowledge of certain building codes that can help avoid costly mistakes. Some scenarios that require a professional contractor include the following. 

• You Need A Permit- Projects that need complex work like structural changes, electrical work, plumbing, or HVAC systems usually require permits. After all, they need to meet building codes. So, having a professional can ensure renovations are up-to-code.
• Specialized Skills Needed- Certain renovations, like rewiring, roofing, or foundation repairs, should always be handled by qualified professionals.
• Time is Limited- If you’re on a tight timeline, like for a fix-and-flip project, professional contractors can usually get work done faster and more efficiently.
• You’re Inexperienced- If you don’t have the right tools, training, or experience, the risk of mistakes is much higher.
• Liability Concerns- Iffy DIY work can lead to insurance claims being denied or future liability issues if someone gets hurt.

Find the Right Lender for Your Investment Property

If you’re thinking of buying a property to fix and flip or renovate to sell for profit, you may think about doing DIY renovations. However, it’s essential to evaluate your skill set, budget, and resources to determine whether it’s best to hire professionals or DIY investment property renovations. 

Looking for the right loan for your next investment? Maryland Hard Money Lenders can help. Our team of real estate loan professionals can help you get funded quickly and efficiently. Learn more about our lending process or fill out our initial loan application today!