How to Plan a Complete Home Remodel in Stages for Budgeting and Equity Loans

Firsthand experience

Let me tell you about what I have learned with regard to remodeling and planning for equity loans, in order to help you hit your goals, get the most out of your home investment, and understand the big picture as well as where to start.

Here is how one of our customers wrote their priority list.

1. New roof (because it protects everything under it...)

2. Add central air and convert fuel oil furnace to natural gas. (comfort and safety)

3. Siding or complete strip and repaint of existing redwood siding (looked horrible and quickly rotting)

4. Another bedroom (baby on the way)

5. Remodel bathroom on main level (unacceptable condition for self-respecting humans)

6. Another bedroom (turned the family room into a master bedroom)

7. Finish basement - to replace the family and recreational space

8. Add bathroom (only one bathroom, so desperately needed...)

9. Replace all soffit and fascia (rotting)

10. Replace garage and driveway (falling down and falling apart)

11. Add bedrooms above garage (this created a ton of value and served the homeowner's purpose)

12. Replace exterior doors and windows (since we painted and didn't replace the siding). When replacing siding, it's significantly more cost-effective to do all windows at once while siding is off.

13. Remove wall between living room and bedroom to expand main level living room.

14. Remodel kitchen completely (strip down to studs, bring up to code, and reconfigure)

VERY IMPORTANT!!!

We recommend undertaking renovations all at once, as it does save money in the long run. This advice is intended for individuals who are not able to do it all in one shot. You also need to make sure to set yourself up well for living in your space as much as possible while all of this work is happening. This may be impossible in a whole home renovation scenario, and a good reason to go with 2 phases.

Financing strategy using equity from previous projects

Try to leverage the more valuable projects first in order to get more equity return. Doing the basement first would be an example, if it is possible. (Immediate equity return in a lump sum for the next project).

Prioritizing

It matters how you will use the home in the next 5 years; that is one of the factors that we consider here at Acadian Building and Remodeling when assessing how to give our best advice on your project. You may want a nice bathroom to enjoy soon, so perhaps that moves it up the list. We look at your functional priority list and try to match the top items with the financially logical items. acadianbuilding.com

Bottom Line

Take on projects first that we know will produce leverage for equity borrowing, that is after the home is secure, i.e., no leaks, infestations, rotting, molding, flooding, freezing, etc. Then, when you reach a point where luxury is the focus, you will have money for that as well..

Projects that will (almost)always pay you back:

Adding a bathroom - You do not have to add finished square footage to the home in order to add the resale value of the bathroom itself, as long as you are not using an entire bedroom, for example, to add the bathroom. In that example, you would be diminishing the value of the bedroom and the project as a whole, but in certain situations, it may still be a good idea.

Adding functional square footage - Only when it produces an entirely new finished space. For example, making your kitchen bigger by pushing it out a few feet will not pay for itself in equity or resale value in most cases (it may sell quicker, but that's because you have paid for a luxury item for them). This assumes that you are not a pro doing the work yourself, and even then, it probably wouldn't pay for itself, much less a profit. So, a kitchen addition that creates a new dining area in addition to square footage is the big win.

Adding a garage - The bigger the better!

Window Replacement

It is worth noting that windows and exterior doors are a significant project on most homeowners' minds, and there really are not many local window and door companies to service Stillwater, Bayport, Lake Elmo, Mahtomedi, White Bear Lake, etc. until now!

Acadian building and remodeling is launching a new service offering!!!

Check us out at stillwaterwindowsanddoors.com. We use the top brands and local installers. We are a trusted local installer for our neighbors here in the St. Croix Valley as well as eastern St. Paul suburbs and the western WI border towns near Stillwater.

Andersen, Pella, Marvin, Kolbe, Thermo-Tech, and many more!