Find out with our guide on how to budget and plan for a kitchen renovation for your home or rental property.

What is the Average Cost of a Kitchen Remodel?

The kitchen is the heart and hub of any home. Owning or renting, coupled up or with a big family, even single and having friends over — it’s the one place where people gather every day. As one of the spaces you need to use the most, they also wear and date fast. 

An old kitchen with outdated appliances is a big turnoff for homeowners and renters alike, which is why it’s an important place to start when considering projects that will add both short and long-term value to the home. 

Whether you’re looking to remodel your own kitchen or planning to upgrade the investment in your rental home, this guide looks at the average costs of a kitchen remodel and how to plan for one. Costs are based on national averages and are accurate as of December 2022, subject to change from inflation and material costs. 

What should I budget for a kitchen remodel?

The National Kitchen and Bath Association says the industry standard for a kitchen remodel budget is around 10% of the value of your home. 

By this standard, if your home is worth $500,000, you should be comfortable with spending up to $50,000 to remodel your kitchen. However, with home prices skyrocketing in recent years, this figure may not be quite as straightforward. If your home is worth $1.3million dollars, do you need to budget $130,000 for the kitchen renovation? You certainly can, but depending on what you want to do and the finishes you choose, you may get away with spending half of that. 

The age and condition of the existing kitchen

Do you need a major remodel or will a minor remodel suffice to modernize the space?

Does the space need to be reconfigured or expanded?

The return on investment you expect when you sell the home — whether that is in the near future or in years to come

The type of finishes you choose for your home will also impact how much you need to budget for a kitchen remodel. You might be able to save money with mid-range finishes and off-the-shelf cabinetry that will suit your remodeling needs. If you live in an area with high-end homes that attract a luxury price tag, investing in higher end finishes or custom work may be a sound investment because potential buyers will expect more for their money. 

To get a better picture of what people are spending on kitchen remodeling, we have pulled together some average costs across the country. 

What is the average cost of a kitchen remodel?

In its annual Cost vs Value report for 2022, Remodeling Magazine lists the following average costs for a kitchen remodel. 

National average cost of a kitchen remodel:

Minor Kitchen Remodel (mid-range): $28,279

Major Kitchen Remodel (mid-range): $80,809

Major Kitchen Remodel (upscale): $158,015

Where your home is located will also have an impact on price. The costs of labor and materials will vary depending on where you live, with homes in California and Washington state costing around 10 - 15% more to remodel than homes in Florida. 

Average cost of a kitchen remodel in Pacific states such as California and Washington:

Minor Kitchen Remodel (mid-range): $31,413

Major Kitchen Remodel (mid-range): $88,229

Major Kitchen Remodel (upscale): $171,150

Average cost of a kitchen remodel in South Atlantic states such as Florida:

Minor Kitchen Remodel (mid-range): $26,921

Major Kitchen Remodel (mid-range): $77,770

Major Kitchen Remodel (upscale): $152,672

HomeGuide lists the national average spent on kitchen remodeling at $100 – $250 per square foot, with a range of approximately $12,800 - $21,200 spent in total. Because of the huge variation in types of kitchen remodels — not to mention rising inflation and stock shortages spiking prices — this doesn’t give a full picture of what people might be spending in 2022. 

Going back to the Remodeling Magazine figures, a reasonable budget for a minor kitchen remodel with mid-range finishes is around $30,000, whereas a major kitchen remodel should be around $70,000 - $90,000. If you’re looking for a more upscale kitchen, you should be prepared to spend upwards of $150,000 for a major renovation. 

Of course, the only way to truly know what you’re in for cost-wise is to speak to qualified professionals for a quote. To get someone in your home to provide an accurate estimate, Belong can put you in touch with the best local contractors in your area from our extensive network. 

It’s also important to have a buffer in your budget. Especially in this era of wild inflation, a tight labor market and global stock shortages, prepare that you will need to spend more than you may have planned. Once you’ve set what you want to spend, you should plan to keep around 10-20% of that aside for unexpected expenses. If you suddenly find out that your dream backsplash went up by $5 sq/ft or that wall you wanted knocked down is load-bearing, having a buffer will take the stress out of the unexpected. 

What is the most expensive part of a kitchen remodel?

When planning a kitchen remodel, there are four factors that will heavily influence the cost of your renovation:

Kitchen cabinetry makes up a large portion of your kitchen, as well as your kitchen remodel costs. Prepare for cabinetry to take up 20 - 40% of your budget. Obviously if you need custom-designed cabinets to fit your kitchen, this will be on the higher end than if you select a flat-pack, ready to assemble option. If your kitchen cabinets are in good condition, you may be able to save money by having them refinished. Consider how long you need them to last and what buyers and residents in the area would expect to see when it comes to getting a return on your investment. 

Installation and on-site labor will take around 20% of your remodeling budget. Depending on how much you’re changing the kitchen will impact how many contractors you will need on site. Changing the layout to create an open plan concept for example may require a designer, structural engineer, electrician and plumber to reconfigure the home. 

When replacing the appliances in your home, the costs can really vary. There are plenty of budget options for refrigerators and ovens, but if you want something with real wow-factor that is going to last for years to come — it could eat up to 15% of your kitchen remodel costs. 

High-end appliances and large stoves make cooking and entertaining a dream, which is why they’re incredibly popular with homeowners and renters. If you’re looking to reign in the budget, consider splashing out on a key item that will elevate the whole kitchen (such as a great stovetop) and saving money on items like the microwave and premium slow juicer. 

Pro Tip: Energy-efficient appliances may be increase the value of your rental home while reducing your residents' carbon footprint. Read more in 7 Cost-Effective Ways To Make Your Rental Home Sustainable in 2023.

What is the average cost of a kitchen remodel? Find out with our guide on how to budget and plan for a kitchen renovation for your home or rental property.

With high demand for long-term rentals, learn more about investing in and pricing LA property for rent.

The Local Investors' Guide to Los Angeles Real Estate

Whether it’s for fame, fortune, or just a good old dose of sunshine, Los Angeles has an allure that attracts people from across the country and the world. 

This means the rental market stays incredibly tight, with properties always in demand. This is excellent news for homeowners who have — or are considering putting — a property on the rental market. 

Most homeowners weigh up their options between using their home as a long-term rental under a lease agreement or using the property for short-term vacation rentals on a platform such as Airbnb. In LA, this decision is fairly straightforward due to the city cracking down on short-term rentals to make more investment properties available for LA residents. 

Whether you’re now considering the long-term rental market or are considering purchasing an investment property in Los Angeles, this guide brings together some handy resources to help you get the most out of your home. 

Is it better to have a long-term rental or short-term vacation home in Los Angeles? 

In 2019, Los Angeles introduced the Home-Sharing Ordinance that eliminated the use of investment properties as short-term vacation rentals. In order to apply for a short-term rental ordinance, you must provide evidence that you reside in the home for at least six months of the year. If you don’t, and you want to use the home exclusively for rental income — long-term rental is the way to go. Homes found to be operating as a short-term rental without a permit or in breach of the eligibility criteria risk daily fines.  

The good news is that if you rent your home on a lease agreement, you can benefit from a steady income for 12 months and are eligible for generous tax benefits that don’t apply to short-term rentals or homes used part-time by friends and family. You’ll also have significantly less turnover and reduce the cost of wear and tear on your property from having the same residents in place for a year or more. 

Own a condo or single-family home in Los Angeles? Belong offers a unique home management service and residential experience to all LA neighborhoods from Alameda and Berkeley to Chula Vista and everything in between. 

How much property tax will I pay on a home in Los Angeles?

The average property tax rate for California is 0.76% (accurate as of August 2022), though as a large state this can vary between counties. For LA County, you can learn more about property taxes and run address searches through their online property tax portal here.

How much rent should I charge for a home in LA?

Los Angeles rents are often reported to be among the highest in the nation. But does that mean you can go big and ask for sky-high rents? Or is it a better strategy to be more reasonable and attract a resident at a price they can afford for the long-term? 

When looking at median rents and stats available online, it’s worth remembering that these are asking-rents for available properties only and aren't reflective of what is actually being paid in the market. These medians often incorporate high-end luxury properties that aren't indicative of all rents, especially with LA’s rent control laws in effect.

When helping homeowners price Los Angeles rental properties, Belong uses technology to blend live market data with an all-important metric: real demand for each home. We determine the right price for your home that will maximize rental income and keep vacancies low, long-term. 

Once your home is on Belong, we get a true measure of the market by looking at impressions, clicks, tour sign-ups and how many people have started applications. With all that data at our fingertips — plus local-market benchmarks — we can work with homeowners to react quickly and maximize rental value, while minimizing vacancy. 

As a result, we trump the property management industry with 66% less vacancy. And our residents want to stay, with 71% renewing their 1-year lease (and unlike property management companies, this is done at no cost to homeowners). 

Read More: How to Price Your LA Rental Property To Attract Long-Term Residents

Who are the best property management companies in Los Angeles?

The best way to ensure your new investment home is well-kept and profitable is to find the best company to help you manage it. But when comparing the best property management companies across California, you’ll be looking at a handful of differences between them all. Things like how much they charge for management fees and how often you’re going to get slogged for more (if they even tell you!). 

With Belong, there’s no comparison. Because Belong isn’t a property management company, it’s a completely unique experience that is humanizing the rental market. 

Providing cutting-edge marketing and video tours to everyone, not just those who pay the most

Not charging hidden fees like setup costs and lease renewal charges

Offering real 24/7 concierge-level support, not just logging maintenance emergencies 

Offering innovative financial solutions for managing cash-flow on your terms

Helping you to maximize your ROI with personalized asset management advice

Going beyond the owner portal for maintenance logging with a mobile app designed for both homeowners and residents to manage their entire renting experience

Using true market data and real-time interest from potential residents to maximize the value of your home

Connecting you to an extensive vendor network of more than 10,000 vetted professional contractors


Even though Belong topped the list when we compared Calirfornia’s top-ranked property managers, it became clear we were comparing apples with oranges. Find out if your LA property is eligible for Belong here. 

Read More: We Outrank The Best Property Management Companies in California

Discover why Los Angeles la-la-loves Belong

We love LA — our local Belong team has over 40+ years of real estate industry experience in the Los Angeles area. From the waterfront living in the Venice canals and the mid-century modern villas in the Hollywood Hills, to the traditional neighborhoods sprawled along Ventura and the Wilshire Corridor condos, our residential network is open to single-family homes and condos right across Los Angeles. LA loves us too…but don’t take our word for it. Here’s what some local homeowners are saying about Belong...

First, I will say being a "landlord" is not easy, so handing over the reigns to Belong is the best decision I could have made!  From renting my place at a great rate, to moving in the new renter, everything was taken care of.  I no longer have to worry about calls on nights and weekends with a request from my tenant. Belong handles repairs, including finding vendors.  So far, it has worked well.” - Lea HS

My experience with Belong has been great. Very responsive, definitely on top of their game.” - Anas D

Think your LA home belongs with us? Find out if you qualify here.

Is Los Angeles a good place to invest in real estate? With high demand for long-term rentals, learn more about investing in and pricing LA property for rent.

At Belong, we believe landlords or tenants are outdated. We want to make renting a magical experience for homeowners and residents. Beyond properties, we are renting people love and happiness.

Belong: Disrupting Property Management 

At Belong, we believe landlords or tenants are outdated. We want to make renting a magical experience for homeowners and residents. Beyond properties, we are renting people love and happiness. 

In this article, we will explore Belong: a company that works as the middle person between homeowners and renters. 

Belong is an online platform that connects homeowners and renters so they both can find what they’re looking for in the most simple and convenient way. 

If you are a homeowner looking for passive rental income, Belong makes it easy for you. With our user-friendly platform, putting your property out on the market and finding the perfect renter can be done without all the stress that usually comes with it. All of this happens in one place, at the click of a button on your phone or computer. The Belong App is people-forward and convenient for everyone to use.

You can forget about advertising your property, showing the house, finding the right tenant, doing a throughout screening process, collecting rent and so many other things that landlords usually have to do. 

With Belong, all you have to do is visit the website, go to the Homeowner section and follow some simple steps that we will list below.

First, you input your address in our search engine to make sure Belong is available in your area. If it’s unavailable, just be patient; we are working hard to expand to more places. You can check out all the cities we’re “coming soon” to on our website!

If you are still living in the property you want to rent out, don’t worry! Belong will handle your move so you can just sit back and relax while we make the magic happen.

Belong will take care of all the reconditioning and renovations needed for your home to be in top shape and ready for showing.

Once your property is ready, Belong will take care of all the marketing, tours, and showings. 

Belong has a trustworthy screening process that allows them to find residents that will care for your home. 

Belong will make sure to do background and credit checks, income verification, identity verification, and reference check. This way we are able to spot the best renters right away and connect them with the right homeowner. 

Belong has a reliable concierge team that will be available 24/7, offering assistance to both homeowners and renters. 

If anything comes up, you will receive notifications straight to your phone and communicate with our team. You will be able to review estimates and approve any work that has to be done in the most simple and convenient way. 

With our guaranteed rent payments, all you have to do is wait for your monthly rent payment. No complex paperwork, no trouble, no stress. One streamlined payment process and online statements are available for maximum ease.

What to consider and how to assess your risk if you have a rental home or are considering purchasing an investment property in a known flood zone in the US.

Real Estate Investing in a Flood Zone: What you need to know

After Hurricane Ian affected many of our Tampa homeowners, we’ve received dozens of questions about owning a rental property in a flood zone. While Belong homeowners and residents were protected by strong insurance and Belong’s extensive vendor network of repair professionals, many homeowners were not so lucky. If you’re considering purchasing an investment property in a flood zone, especially if you plan to rent out the property, there are important factors to consider to protect your investment (and your sanity).

A flood zone is any area with an increased chance of flooding. Flood zones are most often in coastal areas, but may also be in landlocked geographies prone to high levels of rain. Flood zones are officially designated and categorized by the Federal Emergency Management Agency (FEMA) so that current and prospective property owners can understand their risk based on historical flood data. 

FEMA has designated several types of flood zones, corresponding with the level of risk for severe flooding in each zone. There are two categories that real estate investors should be especially aware of:

Special Flood Hazard Areas (SFHAs) – these zones have the highest likelihood to flood, estimated by FEMA to be at least a 25% chance of flooding in these areas over a 30-year period.

Non-SFHAs – these zones are still flood zones, but have low to moderate risk of severe flooding. These areas also receive less federal assistance in the event of a flood.

How to tell if a property is in a flood zone

It’s easy to tell if a property you’re considering is located in a flood zone. If you’re working with a real estate agent, they should be able to tell you ahead of viewing the property. If you prefer to research on your own, FEMA has made it easy on their Flood Map Service Center site to search any specific address, zip code, or coordinates and find its flood zone category in seconds.

“One inch of water can cause $25,000 in damage” - What you need to know

FEMA estimated that each inch of flooding on your property can lead to $25,000 in damages, so you can imagine how a disaster like Hurricane Ian, which resulted in 10 inches of rain, could cost homeowners. 

The average flood claim payout from the National Flood Insurance Program in 2019 was $52,000, which is adequate for low to moderate flooding, but leaves homeowners facing severe flooding in a potential bind. 

What to think about when considering a property in a flood zone

Flood zones are often (not always) located near coastal areas, which are also real estate hot spots. In some cases, even if a homeowner experiences flood damage and has to make significant repairs, they can still come out ahead. Working with a rental pricing expert through Belong can help you understand demand in the area and evaluate the potential of the investment you’re considering. 

Meanwhile, robust flood insurance may cost less than you think. While pricing will vary depending on the flood zone and property value, coverage typically includes your home’s structure, and additional coverage can include your belongings as well. The average cost of flood insurance from the National Flood Insurance Program is $771 per year, a small price to pay to protect your investment.

Don’t invest in a flood zone without expert help 

Only you can determine your level of comfort with the risks involved in a flood zone property, but Belong experts can help keep your home protected. From insurance policies for both rental homeowners and their residents to a vendor network of more than 10,000 professionals to keep your home in great shape, Belong offers peace of mind for homeowners. 

To learn more about how Belong is simplifying the rental experience, visit our homeowner's page and find out more about services in places like Tampa, Miami, Dallas/Fort Worth, Houston, and many many more. 

Finding the right renter, creating a contract, collecting rent, and keeping up with maintenance might make you want to just sell your home instead of renting it but don’t list your property just yet, and keep reading.

Rent Your Property Without Worrying About Finding Renters

We know how tempting it is to rent out your home and have some extra income but we are also aware of the difficulties that come with it. Finding the right renter, creating a contract, collecting rent, and keeping up with maintenance might make you want to just sell your home instead of renting it but don’t list your property just yet, and keep reading. At Belong, we don’t do property management: we offer services that spark joy. 

Why renting out your property might be better than selling

We are Belong, and we know that renting a house is the best option for many people looking for a place to live. That is why we help homeowners to put out their homes for rent without worrying about all the trouble while helping renters to find their perfect homes.

We want to make sure you have all the benefits that renting your home has without all the hassle. We want to make sure you have everything you need to Belong. 

Renting your home is easier than ever before: 

With Belong, you don't have to put ads all over the place looking for rentals or find time each month to do maintenance or collect rent. All of that is taken care of by Belong. Sounds easy? It’s because it is. And if you're still thinking about selling your home, keep reading this article so you can find out the benefits of our management program. 

Benefits of listing your rental property on Belong:

When you let Belong manage your happiness, it means that you only have to worry about receiving your money. Belong will take care of everything, so you don’t have to chase any renter. 

With Belong, you will notice how consistent your income is, and you’ll know you Belong.

Buying a property is a significant investment and renting it out is the best way to get the most out of it.  

With our happiness management program, we also take care of the listings.

You won't have to worry about maintenance: When it comes time for repairs or updates, we have a extensive vendor network of over 10,000 professionals and can even organise regular reoccurring services for whatever you need. That means less stress for you and more time to focus on what matters most: enjoying life with your family!

We won’t manage your property, we’ll manage your whole happiness.

Usually, when people try to put out their home for rent it's easy to feel like you're in over your head. There are so many things you have to think about—and if you're like most people, some of those things that you need to consider to successfully rent your property are way above your pay grade.

However, there is one thing that we can agree on: renting your home is a great way to have some extra income.

To learn more about how Belong is simplifying the rental experience and helping more homeowners reach their financial goals through real estate, visit our homeowner's page to find out more about services in places like Boston, Miami, Portland, Seattle, and many more. 

Managing people, rent, legalities and maintenance can be hard work, but it doesn't have to be. Discover how to rent out your home and earn income the easy way.

Find out how to assess risk and protect investment property in fire zones

Real Estate Investing in a Fire Risk Zone: What you need to know

Destructive fires are becoming increasingly common, especially in the American West. States like California and Colorado have seen record-setting blazes damage or destroy hundreds of homes in recent years as the effects of climate change seem to worsen. For homeowners and real estate investors, this presents a number of risks and challenges, especially because (unlike with flood zones) there is no national standard for building codes or defining high-risk fire zones. 

Thankfully, there are tools to help home buyers understand their risk and choose appropriate fire insurance.

Fire zone designations and associated building codes vary from state to state. In California, building zones are rated from Low to Very High fire risk, and the state has Realty Disclosure laws that ensure you’ll be informed of the property’s status during the purchase process. For most other states, you’ll need to do research with your realtor to understand the property’s level of risk. 

How to research your property’s fire risk

Local and State Building Codes for that Zip Code

Your first step should be to research the local zoning for the property you are considering purchasing. Because fire risk and regulations vary so much by state and even municipality, going straight to the “horse’s mouth” is the surest way to get the most accurate and up-to-date information regarding the official risk designation for the property. 

After understanding official risk designation, you may want to use a tool like this fire risk calculator from First Street Foundation. First Street is a Brooklyn-based nonprofit that has mapped flood, fire, and heat risk to nearly every property in the United States. They use several reliable data points (from property tax data to satellite imagery) to assign a risk score that factors in zoning, construction types, weather, and more. 

Executive Director Matthew Eby told CNBC, “We calculate every individual property and structure’s risk across the country, be it a commercial building, or be it an individual’s home. What you’re able to see from that is that one home might have the same probability as another of being in a wildfire, but be much more susceptible to burning down.”

The Fire Maps from the US Forest Service are a bit less user-friendly, but they provide the most up-to-date global data on wildfires. These are an important place to look if you’re seriously concerned about a specific location or property you’d like to purchase.

Protecting your home or investment property from fire risk 

There are things you can do to protect a property that is in a high-fire-risk zone. Cathy Prudhomme, Firewise USA Program Manager for the NFPA’s Wildfire Division, told Homes.com that homeowners should prioritize the following:

Budget for modern, risk-mitigating construction features such as fire-resistant roofs and siding. Your insurance agent can help you decide on the best type of roof for your home. 

Work to implement best practices in the home ignition zones on the property (removing debris, keeping flammable materials at a distance, fire-resistant landscaping, etc). The surrounding property is often even more important than the actual structure, in terms of fire damage prevention. 

Ensure a minimum of two ingress and egress routes from the property — both so that residents can evacuate if needed, and so firefighters can easily defend your property if needed. 

Add a readily available source of water to your property such as a well or pool if possible. 

Choose a home insurance policy with robust fire protection, and carefully consider the recommendations from your insurance agent regarding risk mitigation opportunities. These may also lower your insurance premiums! 

Are homes in high-fire-risk areas a good investment?

It may seem counter-intuitive, but homes in high-fire-risk areas often sell for a higher price. According to Redfin, “the typical home with high fire risk sold for $119,200 (27.6%) more than the typical home with low fire risk.” This is likely partially because homes facing high risk of wildfires are near popular West-Coast metro areas. While homes in burn zones may decrease in value (as much as 23%) in the aftermath of a wildfire, this effect does not seem to be permanent.

Considering these factors, investing in a property that is located in a high-fire-risk zone can be profitable. It really depends on the property itself and the risk-mitigation steps that the owner is willing to take in order to protect the home and its residents. 

Don’t invest in a fire risk zone without expert help 

Only you can determine your level of comfort with the risks involved in a fire risk zone property, but Belong experts can help! Our rental pros bring years of experience and data to the table to help you understand how much you could earn and what property maintenance might look like in the area. Whether you own a property in a risk zone or are looking to purchase one, get in touch and we can help. 

With no national standard for building codes or defining high-risk fire zones, learn more about how to assess risk and protect investment property in fire zones

Read up on the pros and cons of buying a foreclosed property as a real estate investment.

Should I Buy A Foreclosed Home? Pros And Cons

You can find foreclosed homes in nearly every real estate market in the country, and buying a foreclosed home has become easier following the mid-2000s mortgage crisis. After the moratorium on foreclosures, in response to the COVID-19 pandemic, ended in July 2021, investors expected an increase in foreclosure. However, we’re still seeing a limited supply and significant competition. The greatest incentive in purchasing a foreclosed home is costs, but unpredictable timelines, repairs, and stiff competition may deter you from buying a foreclosed home. 

What your need to know about buying a foreclosed home 

There are several types of foreclosures: pre-foreclosure, short sale, sheriff’s sale, bank-owned, and government-owned. Every kind of foreclosure has unique characteristics, and the purchase process varies. Consider choosing a real estate agent who is familiar with the foreclosure process. They’ll be able to provide you with specific insight based on their experiences. 

When an owner can no longer make payments on their mortgage, the bank takes possession of the home. The bank usually sends a notice of default after 90 days of missed payments. Often, the homeowner has the opportunity to arrange for a new payment plan with the bank before the home is sold. If you’re buying a foreclosed home, you are purchasing the home from the bank, not the home's original owner.

Pre-foreclosure: Once the owner is in default on their mortgage, they are notified by the bank. If the homeowner can sell the property during the pre-foreclosure period, they can avoid the foreclosure process and some of the impacts on their credit history. 

Short sales: If a homeowner is enduring financial hardship, they may be able to sell their home in a short sale. The lender has to agree to accept less for the property than what the homeowner currently owes on their mortgage. Short sales can be lengthy because the bank has to respond and approve the deal. 

Sheriff’s sale: Sheriff’s sales are auctions held after homeowners default on their loans. These auctions are facilitated by local law enforcement, hence the name sheriff’s sale. In these auctions, the home is sold to the highest bidder. 

Bank-owned properties: If a home does not sell at auction, it becomes a real estate owner (REO) property. The mortgage lender, bank, or mortgage investor owns the property, and these types of properties are sometimes also called “bank-owned” homes.

Government-owned properties: Similar to REO properties, this type of home was initially purchased using an FHA or VA loan, both government-back loans. When these properties are foreclosed and do not sell at auction, they become government-owner properties. Then, they are sold by brokers who work on behalf of the agency which issued the mortgage. 

While all cash offers will provide your most significant advantage when buying a foreclosed home, various financing options are available for investment properties. Keep in mind that private lenders may be less inclined to finance the purchase of a foreclosed home. To expedite the process, consider choosing a lender and getting pre-approved for a mortgage loan. 

If you are interested in purchasing a foreclosure, we recommend exploring the government-sponsored financing options available to those who qualify. A 203(k) loan is a type of financing provided by the Federal Housing Administration (FHA). There are several different types of 203(k) loans. You’ll generally be charged a mortgage insurance premium to offset the bank’s risk. You will also find the interest rates for these types of loans are about 0.25% higher than conventional loans. 

The HomePath ReadyBuyer program is offered by the Federal National Mortgage Association (FNMA), or Fannie Mae, and primarily targets first-time home buyers. After participating in an educational course, homebuyers are eligible for closing cost assistance and other benefits. 

Finally, the HomeSteps program may be a good option if you live in one of the following states: Alabama, Florida, Georgia, Illinois, Kentucky, North Carolina, South Carolina, Tennessee, Texas, and Virginia. This program, which Freddie Mac facilitates, only requires 5-10% down and does not require mortgage insurance. You’ll need to find a HomeSteps eligible property to use this program. 

While buying a foreclosed home may offer a unique opportunity, it’s critical to understand the potential drawbacks so you can make an informed decision and confidently move forward.

Lengthy process with additional paperwork 

Foreclosures present a lot of complications, and with those complexities comes additional paperwork and processes. While banks are eager to sell their properties, their processes and response times can quickly become frustrating. If the bank has a backlog of foreclosed properties, its response times can exceed several weeks or months. 

Unlike other types of homes, foreclosed homes are sold “as is.” The buyer is responsible for any damage, repairs, or maintenance that may be needed on the house. This can include repairs that may not be immediately obvious. In the case of a foreclosed property, the seller will make no upgrades or improvements. However, sellers do have an obligation to disclose the existence of lead paint. In some places, sellers may be required to disclose past structural defects, a history of flooding, or infestation. 

Since these homes are sold “as is,” you should expect them to need repairs and updates. Depending on the home in question, these repairs may be costly, especially if they are unexpected. It’s highly recommended that you complete a house inspection during the home buying process to understand what repairs will be needed. 

While rare, you may also experience vandalism, especially if the property has been vacant for an extended period. In some cases, previous owners may intentionally inflict damage or remove items of value from the home. 

Real estate investors and professional house flippers are familiar and well-versed in buying foreclosed homes. They’ve made buying foreclosed properties their entire business, and you can expect them to be discerning buyers. Foreclosed homes with the most opportunity will often attract several bidders. The competition for foreclosed homes has only increased in recent years thanks to the foreclosure moratorium issued in response to the COVID-19 pandemic. 

Once you understand the potential pitfalls of purchasing a foreclosed home, you can weigh any concerns against the unique investment opportunity this kind of purchase offers. 

The most significant benefit of purchasing a foreclosed home is the price. Foreclosed homes are typically sold for less than other comparable homes in the same area. For pre-foreclosures or short sales, the owner has limited time to sell the property. They’re often willing to accept less than the home's current market value. For other types of foreclosures, it’s helpful to understand that banks, local law enforcement, and government agencies are not in the business of selling real estate. It’s often in their best interest to sell any real estate they acquire quickly and efficiently. 

In some cases, you may be offered additional incentives outside of price. Some sellers may offer a reduced down payment, lower interest rates, and a reduction or elimination of appraisal fees or closing costs. 

Purchasing foreclosed homes can be a smart way of acquiring lower-cost real estate and adding to your real estate investment portfolio. If you plan to rent the home and you have the funds to make any required repairs or updates, you may be able to establish a cash flow-positive rental property. 

Make smart real estate investments in partnership with Belong 

Once you’ve purchased and financed your investment property, you can consider how you will manage and maintain your new investment. Belong is a modern alternative to the property management companies of the past. We help increase your returns and price your property for maximum cash flow. When the time comes to find residents for your investment property, we attract, screen, and retain residents who will value your new property as much as you do.

Learn more and calculate how Belong can support your real estate investment strategy.

Should you buy a foreclosed home? Read up on the pros and cons of buying a foreclosed property as a real estate investments.

California rental owners take note: These regular and seasonal maintenance jobs are key to keeping your rental property profitable and in good shape all year.

The Annual Maintenance Checklist for Rental Homes in California

Blessed with opportunity and gorgeous weather year-round, California enjoys a strong demand for rentals from around the world, making it an ideal place to own a rental property. But a home in disrepair isn’t going to attract good residents or the right price for the market. Regular maintenance on a rental is key to keeping the home profitable and in good shape. 

While the weather varies across the state (yes, we’re looking at you San Francisco), this annual maintenance calendar will give you a general idea of the kind of repair and maintenance items you should cross off your list every year for a rental home in Cali. Staying on top of the condition of your home can save time and money in the long run, helping to identify any issues and necessary repairs before they become costly headaches. 

Some of these items you can ask your residents to look after for you, but some you will need to check for yourself in annual or quarterly inspections. Or, if your home is looked after with Belong PRO, we can handle the lot — from speaking with the residents about issues to connecting you with one of 10,000+ professional contractors in our extensive vendor network. 

Winter Maintenance Checklist for California Rental Homes

While winters in California are mild, you still have a responsibility to your residents to provide heat, especially hot water. Don’t neglect the water heater in your rental home — a yearly flush can prevent pipes from bursting and let you identify problems or leaks before they get worse. 

Unless your home is in the mountain ranges, there’s a good chance you won’t have to worry about snow removal or planning for frozen pipes. What your residents might do though is keep their homes locked up tight and crank the heat. The contrast of temperatures mixed with a lack of ventilation = mold and mildew. Remind residents to keep the home well ventilated, such as running exhaust fans in the bathroom after a hot shower and opening windows on sunny days.

Check and/or service heating to the home to ensure it’s operating

Check for leaks in the ceiling or any signs of water damage to repair before winter and spring rains set in and problems deepen 

Check for mold and moisture issues, remind residents about the importance of ventilation 

Check house siding for damage and/or leaks

Spring Maintenance Checklist for California Rental Homes

Most of California is considered to only have two seasons: summer and winter. Alas, spring does exist and brings with it plenty of sun, rain, and opportunities for your yard to grow out of control. If your rental home has a lawn and yard, spring is a good time to give it some love to ensure you maintain curb appeal and function. 

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