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As part our first Liberty Wells remodel series, I go over the options for different remodeling investment options.

📐 Lot Size and Unique Access as a Strategic Asset: The 165-foot deep and 35-foot wide lot, combined with access to the abandoned alleyway, provides unique opportunities for expanding the property’s footprint or adding structures like garages or ADUs. This is a rare feature that could significantly enhance the property’s functionality and value, particularly in dense urban environments like Salt Lake City.
🛠️ Structural Challenges Influence Financial Planning: The presence of a cracked foundation, necessary beam reinforcement, and truss repairs adds complexity and cost to any renovation. These structural issues necessitate careful budgeting and may extend the timeline, highlighting the importance of thorough inspections and engineering assessments before committing to remodeling.
💰 Flipping as a Conservative Profit Strategy: Flipping the house could yield around $50,000 after accounting for renovation costs and interest on borrowed funds. While this is a feasible short-term strategy, it is less appealing given the moderate profit margin and the current purchase price, suggesting that alternative strategies may offer better long-term returns.
🏦 BRRRR Strategy Offers Tax and Cash Flow Advantages: Using the BRRRR method allows investors to build equity and generate rental income while benefiting from depreciation tax breaks, especially with recent tax law changes favoring rapid depreciation. This makes rental property ownership financially attractive, though recent market challenges have made this approach somewhat more difficult than in previous years.
🏗️ New Construction as a High-Cost but Personalized Solution: Tearing down the existing structure to build a new home addresses personal space needs and modern living standards. However, this option involves substantial costs and risks, including construction expenses and the challenge of managing a complex project, which could strain budgets and timelines.
💸 Addition and Remodel as a Balanced Investment: A major remodel and expansion, including potentially increasing the square footage to near 3,000, could be completed for around $600,000 on top of the purchase price, totaling close to $900,000. This option balances cost, time, and value, offering a customized living space while preserving some of the existing structure.
🏠 Incorporating ADUs to Address Housing Demand and Income: Building a garage with an accessory dwelling unit (ADU) taps into Salt Lake City’s growing housing needs and offers additional rental income streams. This multi-functional approach increases the property’s appeal to future buyers and provides flexibility for the current owners, reflecting a savvy strategy for urban real estate investments.

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