You have found a home that has good bones and think that with your creativity, it could turn into a masterpiece. “But,”...though you see the potential you are reluctant to get the property because you have never taken on a task of renovating a property before. You are concerned with how to get your imagination into actualization without costly mistakes.
You should not be intimidated from a good deal because of the renovation task. The task of renovating a home is not as difficult as one may think. The risk is minimized with the right professional by your side.
The first professional you need is a real estate agent that knows about fixing up properties. The real estate agent will do a Comparative Market Analysis and show you data of similar homes that got renovated with their sold price. A real estate agent should be able to give you ideas and weigh the feasibility of your plans before you write a purchase contract.
The second is an excellent general contractor. A general contractor will listen to your ideas and then put your vision on paper with the potential cost. Many good contractors have access to computer-aided drawings that allows you to see your concept in virtual reality before you take on the task. The general contractor will be responsible for various subcontractors with the skills needed to bring your imagination into reality and for pulling the required building permits. Approaching your task in this manner will keep you from making costly mistakes.
You must have plan changes drawn promptly because of the time limitation of the inspection clause of your purchase contract. Some general contractor may charge an upfront fee to draw up your plan with a material cost. Some contractors would refund their upfront fee if you used them to complete your project.
After the general contractor returns with the potential cost to renovate the property, you then add it to your purchase contract price to get the total feasibility cost. At this point, you subtract the purchase price and the full improvement cost from the Comparative Market Analysis amount. If there is sizable equity, then the deal is profitable to pursue.
Creativity is the key; it is not essentially how much you spend but how thrifty you spend to make it all fit together in harmony.