Talking with real estate experts and contractors about home remodeling, I learned that in assessing a property’s potential, one should identify the limiting factors. If a house is near a noisy highway, that is a limiting factor. No matter how much marble is put in the bathrooms or how fine the cabinetry is in the kitchen, the noise will limit the house’s value. Similarly, if a room has wonderful hardwood floors and classic architecture, a less-than-excellent paint job will limit its attractiveness. As an investor, one wants to find limiting factors that can be fixed, such as paint, rather than
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