With real estate investments, there is a fine line between updating and modernizing your property while offsetting the cost of those renovations. Sometimes the improvements aren’t a great option, e.g. B. If devices are broken, the roof goes up or someone was previously at home on the property who smoked. However, other enhancements are entirely optional.
It can be difficult to determine whether the cost, directly or indirectly, provides enough value to make the project worthwhile and still maintain your profit margin. Creating an open floor plan certainly fits into the latter category. Most modern homes typically have an open floor plan, but creating an open floor plan design in an existing home can be costly. Whether you’re considering a rehab-and-flip or upgrading a rental property, deciding whether to create an open floor plan will make a huge difference to your bottom line.
What is an open floor plan?
An open floor plan is a floor plan that merges two normally different rooms into one large room. A common example would be removing walls between the kitchen and dining room or living room, but it can technically even refer to offices, dens, or other rooms in a house. You will sometimes see an open concept made with half walls, but most of the time it means removing the walls entirely. An open floor plan creates a lighter and airier feel while creating a more social space for entertaining, watching the kids, or chatting with your spouse while you cook. It can also be a great way to create the appearance of more space in a home. So if your property is smaller this could be a good solution for you. With nearly three-quarters of home buyers preferring an open floor plan, this is certainly worth considering.
What does an open floor plan cost?
With an open floor plan, walls are removed, the floor and ceiling are repaired at this point and, depending on the removed wall, things like cabinets, appliances or cabinets may be moved. The cost of removing a wall is not too high for a one-story house. It can be as low as $ 300 for a non-load-bearing wall and up to $ 3,000 for a load-bearing wall. Multi-story home prices are rising significantly and can cost up to $ 10,000. Mending ceilings typically costs anywhere from $ 50 to $ 75 per square foot. Floors vary widely, but typically cost between $ 200 and $ 800 to repair. But keep that in mind when you have the right flooring available. If you don’t, you might be able to renew all of the floor in this room. And don’t forget the costs associated with new cabinets if the new open layout can’t do without it.
Is it worth the cost?
If you’ve already planned extensive remodeling like a brand new kitchen or floor, opening things up for a small additional amount might not be a bad idea, especially considering the demand is there. However, if the repairs were minimal, or if you are considering the project solely to create an open floor plan, it may not be worth the money spent. Ultimately, it comes down to the budget of the project versus other projects and the use of the property to determine whether it is worth it or not.