Looking for a renovation project as an investment as well as a dwelling space?

It is extremely difficult to recoup the full cost of your renovation when you go to sell, no matter how fantastic the result is.

There are a few things you can do however to increase the value of your renovation.
1. Score a great deal in the first place. This is challenging (but not impossible) now as prices are rising back to pre-boom values. Be ready to make an offer with your financing already in place. Better yet, cash is king.

2. Location, location, location. Find an up and coming neighborhood (just make sure you can handle living there while the area is in transition) or choose the crummiest house in the best neighborhood. You'll never go wrong buying in a popular neighborhood (or on the water).

3. Add square footage. Choose a project where you have the flexibility to add space to what is there. An extra bathroom, bedroom or living space will always add value to a home.

Home values are calculated based on a price per square foot within the neighborhood. More square footage equals more value. This is the single most important thing you can do to increase the value of your home.

1930's Home Restoration & Design - Project update #2

So here is the project: A main house built in 1936 and a separate "servants' quarters" built in 1933.

Fully renovated in 1974 and meticulously maintained for 40 years with little or no change. Harvest gold cabinetry, Partridge Family linoleum, and Laura Ashley wallpaper intact.

Because there are two houses on the property, it is grandfathered into the neighborhood as a duplex. The main house has been subdivided (presumably illegally, taking advantage of the "duplex" designation) into two apartments.

A sheet of 1/8" ply has been nailed over the door frame separating the second bedroom from the rest of the house. On that side, there is a separate entrance from the side porch, a second kitchen and a bathroom so tiny that the vanity is hinged to flip down for access to the toilet. The former owner of the house was a pilot so we assume this is homage to the MD-80 he must have flown. Horrifying.