Hidden Renovation Costs That Will Devour Your Profits of Orange County Real Estate

Hidden renovation costs can quickly eat up your profits when it comes to Orange County real estate. Learn more about what to watch out for in our latest post.

When buying an investment property, there will likely be all sorts of renovations you would like to make. It’s important to know which will kill your profits and which will provide a solid return on investment. Below, we will discuss some of the hidden renovation costs to watch out for when making improvements to your Orange County investment property.

Getting It Up To Code

Many older houses in particular, have been through renovations that may not be up to today’s standards. Bringing the house up to code can throw a wrench in your plans once the inspections have been done. In some cases, you will have to tear out things that had already been done, redoing them to be up to current building codes. Before you begin any renovations, make sure permits were pulled for any previous work and that everything passed inspection.

Permit Costs

Building permits need to be pulled for any work done to your property. Whether you are making a small or large improvement, you’ll need to file the correct paperwork with the department who handles permitting in your area. You will need a permit for additions, major renovations to the home, electrical and plumbing work, and of course new construction. The average cost of these permits is anywhere from a few hundred dollars to a few thousand dollars depending on the work that is being done. Getting the right permits is possibly the most important part of the construction process. Failing to do so can have serious repercussions over time.

Pest Problems

Once you start tearing the house apart, you’re likely to find many things you didn’t know were there. Whether it’s termites, mice, raccoons, or a colony of gophers, evicting these unwanted tenants from your property can be expensive. It can also hold up your construction, causing further delays in the renovation process. It is important that at pests are professionally addressed at the very first sign of infestation.

Child and Pet Care

If you are living in the home during a renovation project with your pets or small children, you might have to pay for extra care while the work is being done. Many people bord their pets as to not frighten them and to keep them out of the way. If you are doing much of the work yourself, it can be dangerous for a toddler to be running around. To keep everyone safe, kids will often be sent to the sitters during the periods of heavy construction.

Water Damage & Mold

Once a portion of the home becomes torn apart for renovations, it’s not uncommon to find signs of water damage and mold. Unfortunately, fixing these problems can be an expensive process. You’ll need to determine the source of the water and the extent of the problem. Mold will need to be professionally removed and repairs will be required to anything damaged by the leaking water.

Underbidding and Unplanned Costs

Without fail, you will find yourself dealing with unplanned costs and expenses. Bids will often be low and new things will inevitably come up along the way. It’s a good rule of thumb to budget 10-15% of your available funds for hidden renovation costs. You don’t want to find yourself in a situation where you are out of money with the project not yet completed. By adding this to your budget ahead of time, you can be sure you won’t go over budget or get stuck with unfinished projects.

We can help you learn about hidden renovation costs to watch out for in Orange County. Get in touch with us today! 949-625-4533


Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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