In this video I'll be Reacting to Graham Stephan’s $100,000 remodel, I go in depth and analyse what Graham has done, what bits are good and bad and what I would have done differently.
Graham starts by saying that most Real Estate Investors would just replace the carpet, slap some paint on the walls and replaced the acoustic ceiling for around $30,000, this is great advice as as the most important thing on a remodel is to not go overboard.
The UK market is very different and this kind of fairly straightforward remodel could be done for around £8,000.
Graham Stephan then goes on to say that he needs to do some more work to change the layout and floorplan of the property which is a huge red flag as this kind of work can really turn into a money pit as it sounds like a complete ground up development which only really works in a very specific circumstance.
If the street is full of $1m+ mansions and you find a small 2 bed bungalow, its definitely worth buying it, knocking it down and building a property similar to the others on the street. However, if you buy a $1m+ mansion to knock it down to build a similarly sized mansion, you're probably going to be working on a very tight margin.
It also looks like Graham Stephan has raised the ceilings in the property which is very rarely done in the UK as, in the UK, properties tend to span 2-3 levels and therefore its a lot more time and effort.
However, it does seem that Graham's decisions could pay off for him, if he generates an additional thousand dollars extra per month in rent after the remodel, it would take say 10 years to entirely recoup the initial outlay, especially if he has bought the property for less than the value of other properties, this remodel could pay for itself in under 1 year.
Watch Graham Stephan here; https://www.youtube.com/channel/UCV6KDgJskWaEckne5aPA0aQ
Social media
Instagram - ThomasJamesYT - https://instagram.com/thomasjamesyt
TikTok - ThomasJamesYT - https://tiktok.com/ @thomasjamesyt
Subscribe for more property related content - https://youtube.com/channel/UCRTndpz_fpcVcoVe0QF1IgA
The information in these videos shall not be construed as tax, legal, insurance, construction, engineering, health and safety, electrical or financial advice. IF stocks or companies are mentioned, Thomas MAY have an ownership interest in them -- DO NOT make buying or selling decisions based on Thomas' videos. If you need such advice, please contact a qualified accountant, solicitor, insurance agent, contractor/electrician/engineer/etc. or financial advisor.
This is not an advertisement of property for sale and shall not be construed as anything other than an opinion for entertainment purposes only.
#GrahamStephan #RealEstate #RemodelReaction