Transforming our home proved disastrous - a four-year horror show ensued
In the heart of Baltimore, a row house atop a hill underwent a transformative renovation, marking the first step in a freelance writer's retirement real estate portfolio. The house, with about 20 other row houses attached, was run-down and outdated, having not been renovated since the 70s.
The writer, with a vision for a rental property portfolio, initially estimated the renovation costs to be under $100,000 USD. However, the project faced numerous challenges, including soaring lumber prices and delays in material deliveries, causing the costs to more than double, ending up at approximately $200,000 USD.
The initial plan was to complete the renovation in twelve months, but it took almost four times longer than anticipated, stretching over four years. The price of a thousand board-feet of lumber skyrocketed from $320 USD (275 EUR) in April 2019 to $1,500 USD (1,287 EUR) in April 2020. Wait times for certain materials and deliveries increased significantly, causing delays of up to six weeks for patterned tiles and four months for a replacement top.
The writer's wife initially thought the renovation was a bad idea and suggested selling the house. But the writer, undeterred, pressed on, determined to turn the run-down property into a valuable rental unit.
The renovation required a thorough overhaul due to the outdated wooden paneling and repurposed gutters used as ventilation shafts. Key strategies included choosing durable, low-maintenance flooring and finishes, thoroughly assessing the property upfront, and planning renovations around tax considerations.
Despite encountering several setbacks, the writer persevered. Two project managers and two general contractors resigned during the project, and the new general contractor had to fix problems with the previous work, including incorrectly installed air conditioning and flawed wall framing.
The writer's tenacity paid off, and the property is now generating rental income. Looking back, the writer plans to build a smaller real estate portfolio for retirement, but will avoid properties requiring extensive work in the future. The lessons learned from this four-year journey will serve as a guide for future projects, balancing cost control with tenant satisfaction and property value growth.
What was the initial estimated cost for the row house renovation in Baltimore's heart? The writer planned to keep the expenses under $100,000 USD.Despite facing challenges like soaring lumber prices and material delays, the renovation project ended up costing approximately $200,000 USD.The writer chose to persist with the renovation, making key decisions like selecting durable, low-maintenance flooring and finishes for the house.Looking back on the four-year project, the writer will use the lessons learned to build a smaller real estate portfolio for retirement, focusing on properties with less extensive renovation needs.
