Part 6/9:
Renovation costs are inherently subjective, differing based on personal taste and property size. Investors generally recommend spending no more than 10-20% of the property's value on renovations. For instance, if the property costs $500,000, a prudent renovation budget would be around $50,000.
A conservative approach is to view renovation expenditures as depreciable assets with a 10-year lifespan, meaning full recoupment of costs at resale is unlikely. Overcapitalizing can diminish potential returns, so keeping renovation costs within this range safeguards financial health.