Renovating a basement can add considerable value to an investment property. Many basements can be considered a blank canvas where a bedroom can be added, or an additional bathroom, or perhaps a space used for relaxation. Most basement renovations can be budget friendly. The following are wonderful benefits of a basement remodel:
Adding an Additional Bedroom
Homeowners can increase the square footage of their home with basement renovations. By finishing their basement space, they can possibly add one or more additional bedrooms to their home.
In the majority of vicinities, to be considered an actual bedroom, there must be at least two forms of egress, and a closet as well. While building a closet is not too hard, forms of egress are more complex to add and may require professional assistance. Often, this involves construction on the foundation walls to widen existing opening or to create new ones. Value of the property can increase scientifically with the adding of bedrooms, however.
Adding an Additional Bathroom
Rather having only one bathroom, having a two-bathroom home can be appealing to those in the market for a new home. Of course, adding a bathroom to your basement requires more than just drywall making is costlier.
A plumber is necessary if you do not have experience, and plumbing fixtures will also cost. If you are considering tiling the bathroom, this is another added expense.
While up-front costs are greater than adding an additional bedroom, the functionality offered from an additional bathroom provides homeowners with an invaluable investment that pays for itself in addition to helping you sell the property more promptly.
Property Value Increased
Renovating a basement will increase the value of your investment property. This is considered a great return even though it is possibly not considered “livable square footage” by Market Listing Service.
On average, finishing a basement in the United States gives a return on investment (ROI) OF 70% – 75%.
Whether you have plans to quickly sell an investment property or maintain it as a multifamily, you can add a rental unit with basement renovation. This is dependent on zoning department approval in your area, however.
Also, two forms of egress, as well as one form of an entrance, must be installed to conform to fire codes.
Furthermore, prospective buyers who are looking for ways to reduce their mortgage payment will look at this rental unit very favorably. The rental unit’s monthly rental payment will likely cover all or a fraction of the mortgage expense.
If you are considering retaining the property where you are adding a rental unit, the cash flow of your property will be significantly increased with a basement remodel. While basement rental units do not provide an amount as high as above ground units, you can still expect to receive substantial income for a space that would have remained vacant.
When considering a basement renovation, employing professional assistance can ensure all work is completed properly and within the code.