I helped a client see how she could save $910 monthly on her future mortgage, and set herself up to make significantly more money when she sells in the future.

Here’s what we analyzed:

  • She could use her full approval amount of 700k to buy a move-in-ready home.
  • Or, she could buy a fixer at $560,000 and remodel it herself .

The lower price point allows her to borrow less money, reduces her mortgage, gives her control over the remodel, and creates instant equity.

Here were some of her concerns:

  • What’s the cost of the remodel?
  • Where would she live in the meantime?
  • Would she be able to carry a mortgage and a rental payment while work is being done?

Here’s how we figured it out:

  • I created a spreadsheet: one column with cost to buy the 700k home, and second column with cost of buying and fixing the 560k home.
  • I provided her quotes from my trusted contractors.

Here are the numbers:

Cosmetic remodel + structural upgrade including: new electrical, new plumbing, tankless water heater, adding central AC, kitchen and bathroom remodel, floors, interior and exterior paint, expanding closets, etc. would cost $77k. This quote is for a 2 bedroom, 1 bathroom home in Los Angeles County.

If she bought at 560k and added 77k of work, her cost to own would be at 637k.

That is 63k less than the cost of the $700k move-in-ready home…

…which didn’t have new electrical, plumbing, central AC, and tankless water heater.

Not only would she spend less money for more home, but she would build instant equity, and have a lower mortgage. When she sells in the future, she will turn a bigger profit.


Her landlord would allow her to stay at her current apartment on a month-to-month basis while the work is being done. We added cost to rent and carry mortgage to her overall budget, and numbers still made sense.

Often, when you buy a home, you skip the mortgage payment on the first month. That helped. 


If you need help analyzing the right purchase for you, book a consult with me:

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Call or text: 562.287.4944

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