Real Estate Rookie

How I Spent My $36K Home Renovation Budget for the Highest Rents

Jan 15, 2025

Rene Hosman, a rookie real estate investor and community manager at BiggerPockets, shares her journey of transforming an outdated apartment into a cash-flowing condo with a budget of $36,000. She discusses her strategies for staying on budget and timeline, revealing the highs and lows of renovations, including a flood disaster. Rene offers valuable tips on DIY projects, smart hiring decisions, and cost-saving materials. Listeners will benefit from her insights on managing unexpected expenses and maximizing rental returns.

47:43

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Episode guests

Rene Hosman

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Episode notes

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Quick takeaways

Rene's renovation success hinged on strategic budgeting and project management, emphasizing the need for flexibility to handle unexpected expenses.

By sourcing furniture creatively and understanding tenant needs, Rene is optimizing her renovated space for increased rental appeal.

Deep dives

Renee's Acquisition Strategy

Renee acquired a two-bedroom, one-bath condo through a probate court situation after the previous owner passed away. Utilizing a first right of refusal clause, she successfully matched another cash offer using a hard money lender, purchasing the property for $190,000. This strategic move highlights the significance of being familiar with the local real estate market and understanding how to leverage unique opportunities. Such strategies are vital for rookie investors looking to make their first purchase.

Intro

2min

Navigating Home Renovation Challenges

9min

Navigating Real Estate Challenges

5min

Navigating DIY Renovation Challenges

8min

Mastering Home Renovation Management

10min

Navigating Local Banking and Real Estate Insights

13min

Home renovations can substantially increase your equity and cash flow on a rental property, but when doing one, there are two key things you need to pay attention to: budgets and timelines. Today, rookie real estate investor Rene Hosman is back to teach you how to do both after just finishing a three-month, $36,000 rental renovation where she turned an outdated apartment into a cash-flowing condo!

Rene was able to rehab the entire unit (two bedrooms, one bathroom) with a budget of around $30,000, and although she may have gone slightly over, her returns look nothing less than phenomenal. How did she do everything—new floors, electrical, bathroom, AND furnishings—with such a reasonable budget? If you’re ready to renovate your home or rental property, take her tips.

Rene goes through every aspect of the project: the good (renting it out right after finishing) and the bad (a BIG flood in the master bedroom), plus everything in between. She’ll share what she chose to DIY, what was smarter to hire out, and how she paid for it all. We also get the final numbers of the renovation—what the property appraised for AND how much it’s renting for now!

In This Episode We Cover:

How to stay on budget and on timeline when doing your next home renovation

Unexpected costs that led to thousands of more dollars in renovation expenses

Whether you should buy the materials or let your workers buy them instead (cost-saving tip!)

Furnishing your rental property for cheap and where Rene finds low-cost, quality furniture

How to negotiate with your bank so you can get a LOWER interest rate when you refinance

How much cash flow Rene will make off of this small (but mighty) medium-term rental

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile

Tony's BiggerPokckets Profile

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