Imagine walking into a house that has been on the market for 11 months and in need of little TLC. Many dream of transforming such a property into a home, or rental property. The temptation to spend money and customize a living space is real, but there are crucial aspects to consider when embracing this journey.

Understanding the Risks

First, be aware of hidden issues. Such as hiring and firing of contractors, and the hours they are willing to work. Or, having to redo mistakes that should have not occurred, if they were properly installed! To mitigate these surprises, consider setting aside a 10% to 20% buffer in your budget.

Also, keep in mind that rising material and labor costs cannot derail your plans. Market fluctuations are not as common as media portrays, and creating a financial cushion is wise.

The Potential Rewards

On the positive side, based on your tax situation a rental property or second home provides great opportunities. Having a reason to be creative is also very rewarding, as being handy is a must. Your willingness to make a deadline by getting your own hands dirty too will allow for more extensive design upgrades.

Thoughtful renovations can significantly increase a home's value, offering a potential return on investment. I myself have recently done exactly what this article is about! Understanding your needs offers long-term satisfaction and may save money on future taxable events.

Final Thoughts

I purchased a home on a golf course in 2025 for 256,600 in Citrus County. A smart financial move apparently, when approached with caution and thorough preparation. I have followed thru with a renovation plan, and have a tenant lined up for January 15, 2026. As you know, I am a lawyer since 2010, and as of last year, a realtor too. Ask me if you would like my help!