This just cost me $100,000 …



Here is an update on my renovation that has officially gone over budget, and is now costing me over $100,000 to complete – here’s the ROI and breakdown. Enjoy! Add me on Instagram: GPStephan

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I bought this place with a tenant who had already been living here for over 10 years. By the time I took it over, the unit was in pretty much original condition – which is basically another word for: it’s a disaster and needs a lot of work.

Well, those tenants ended up moving out a month ago – and that left me with a unit that needed a complete overhaul. Unfortunately, this wasn’t as simple as just replacing carpet and slapping some paint on the walls and then calling it a day…

This unit is located in a fairly desirable part of Los Angeles, so in order to get top dollar – it needs to be done up all the way, and done correctly. Plus, in order to do that – this unit needed the floorpan re-arranged, it needed another bathroom added, it needed ceilings replaced, and it needed an entirely new kitchen, etc.

So, with that…about 2.5 weeks ago, we started demolishing the unit, tearing out the walls, and seeing what was behind.

But as we got behind the walls, I began realizing that things would cost just a little more than anticipated…

Now, keep in mind – initially, I set my remodeling budget around $65,000 – just KNOWING that it was going to be more like $85,000 by the time it’s done. Because now, after doing 5 renovations…I just assume it’s ALWAYS going to cost more than I think, and it’s going to take LONGER than I expect it to…

Although this one, I admit…I underestimated, a bit too much. Even at my final $85,000 estimate… I was still off.

These are the details about the home renovation, my expected return on investment, and other questions you have asked for 🙂

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

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  1. I don't understand why spending 85,000 to make 600 to 700 more.
    if you take the minimum, so 600, and calculate your ROI on the extra cost. (85,000 / 600) / 12 = 11.8. It will take you almost 12 years to get that money back, but he wants to tear down the place in a few years. so he is basically losing money….sort of. correct me if I am wrong, maybe I forgot something.

  2. You could have done half of the important stuff rent it out for two years . Then you could evict for the rest of the renovation then sell and avoid the taxes . Plus enticing a new buyer with Reno's.

  3. Gram I got it, your next YouTube project that will set you apart from everyone else.
    “Mentoring Millennials “
    Using your videos as background for teaching now you will take it to the next level, each video will be an episode where you will select a lucky person ( me being the first one) to mentor on a specific subject, Stocks, Real State, Retirement plan, Savings, Credit Cards, any subject you have talked about in your videos.
    The person you select will pick the subject he wants to be mentor in and spend some time with you a day or two. You will go in depth and mentor that person as best you can.
    Then you can do a follow up video on how that impact or change their life.
    Example me after I go and do the program on lets say real state, and see what I done after if I bought any real state or have made a plan etc.
    What do you think?

  4. People actually pay $3k to rent? That’s insane. If people can afford that kind of rent why can’t they just buy a house? Location location I guess but that’s stupid in my opinion.

  5. Hey Graham for your channel I will…

    *SMASH because you're frugal
    * SMASH because you're funny
    * SMASH because you harassing me too hahahaha

    Thanks for another awesome video! Keep it up!!

  6. Moral of the story, if you want to renovate a house, figure out how much it would cost to demolish the whole thing and rebuild it and do that instead because it's going to cost that much anyway and just be a rollercoaster of disappointment.

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