4 ways to transform that spare bedroom

When building or moving into a new home, it’s always nice to find that you have a bonus room. This is effectively an extra room that can serve any purpose you like, be it as a makeshift guest room when you have overflow during the holidays, a space for kids to play, or a special place for you to practice whatever hobby might interest you. Or at least, that’s the idea. All too often however, we allow these rooms to go more or less unused, such that they wind up primarily as storage spaces and places to put a guest on an air bed in a pinch.

We have a few ideas, however, on how to get more out of a bonus room and turn it into a great asset for your home.

Make A Modern Game Room

By game room, we’re referring in this case specifically to video games. This has always been a popular use for bonus rooms, though in the past it basically meant having a couch, a TV, and a gaming console set up in whatever way makes the most sense. Now, however, there is so much more possible equipment that can be purchased so much more affordably, it’s possible to actually design the whole room to revolve around gaming. For instance, dark paint or wallpaper can be used to “shrink” the room from the eye’s perspective, and help the eyes zero in on the games. Comfortable couches can be customized to make the environment more appealing. Surround sound can be achieved with a few speakers rather than some elaborate system hooked up in every corner. And nowadays some people even set up space for virtual reality, which is fast becoming a popular version of in-home gaming. It requires some spending, but ultimately you can make a spectacular bonus gaming room with relative ease.

Design A Classy Poker Den

This is another form of game room, though naturally a more old-school version of the concept. A poker room can easily be somewhat tacky, but there are ways to design one that’s quite classy as well. You’ll want to start by furnishing the room more like a study or lounge than some basement den. That means soft carpet, lamps instead of overhead lights, paintings instead of posters, and uniform furniture instead of mismatched loungers.

We’d also suggest one or two additional touches.  You can find rankings of different hands or overarching rules of poker online and arrange them as a poster or plaque to hang in the room. Others can be art-based. You could also find any famous painting involving cards or poker and hang framed replicas. Little touches like these intensify the poker atmosphere and make the room that much more unique. Then all that’s left is a table suitable for card games and perhaps a small bar counter setup if there’s space.

Go For The Home Cinema

Much of what we’d specifically say for a home cinema overlaps with the game room concept above. Though it should be mentioned that people these days can build home cinemas on the cheap. The extreme high-end TVs are easily skipped (you don’t need a “smart” TV for an extra $400), projectors are unnecessary, and in some cases your smartphone can serve as a universal remote, for instance. Here as with a poker room you can add a few personal touches, such as framed posters for famous or favorite films. But the core concept is fairly straightforward and, with good strategizing, can be surprisingly affordable \.

Make It A Creative Space

A creative space can be all kinds of things. But whether you’re a part-time writer who needs a desk and a few materials on hand to be at your best, a crafting enthusiasts who tends to make a mess through the process, a painter who likes to have canvases spread out, or whatever else, a bonus room can be a perfect creative studio of sorts. Because this can mean so many things we won’t point to specific tips. But generally speaking if you have good lighting, a few surfaces, some open space, and a closet, chest, or set of drawers of some kind for supplies, you can design this sort of room any way you like.

Owning a home means staying put for 5 years

Millennials could be missing out on a lot by choosing to rent as opposed to buying homes, according to financial author David Bach. His study found that homeowners are 38% wealthier than renters. Buying a home is more expensive than renting and requires more responsibility; however, unlike renting, when you buy you are making an investment.

Like any good investment, buying and selling homes requires patience. The median age for first time home buyers is 32. If first time homeowners are patient and live in each of the homes that they buy in their lifetime for a minimum of 5 years, by the time they are 50-60 they can sell their home and use the money they make to retire. The following is a list of things to consider when buying a home, and reasons to remain in your homes for at least 5 years.

Know Your Budget

The median income for first home buyers is 72,000. If this income seems high, consider a studio or smaller home to lower the cost. The bank will loan you the maximum that they think you can afford. Consider borrowing 10-15% less than the bank will lend you, this will make your monthly payments more affordable and your debt more manageable.

If you can save at least 10% as a down payment, you will considerably lower your mortgage payments. The more money you have as a down payment, the lower your loan rate will be. An appropriate down payment will allow you to secure an affordable monthly payment.

The Five-Year Rule 

Many homeowners stick to the five-year rule, according to Scott Durkin, chief operating officer at Douglas Elliman Real Estate. The best you can hope for after one year is breaking even, but more often than not homeowners take a loss. Beyond two years, homeowners are no longer subject to capital gains tax; however, five years allows them to build more equity.

The general principle of the five-year rule is waiting for the market to appreciate to double digits, in the hopes that when it does, the buyer can recuperate some of the purchasing costs. If the market doesn’t appreciate after five years, at least you have built enough equity to sell your home and make some money.


After what feels like a lifetime of sticking to the five-year rule, you will be ready to sell for the last time and begin to plan your retirement. If you are living in your forever home and over the age of 62 you qualify for a reverse mortgage. A reverse mortgage is exactly as it sounds, the payments work in the opposite direction of a conventional, forward mortgage. Essentially, you sell your equity to keep your home, and receive payments from the lender instead of making mortgage payments. As you receive payments your equity declines, but you can keep your home for the rest of your life. The reverse mortgage will be paid when the house is eventually sold; however, the borrower (the person paying a reverse mortgage) can only gain or break even from the sale because the amount owed cannot exceed the value of the home.

Reverse mortgages aren’t for everyone. They can be great for some and very risky for others, so we recommend doing your research and talking with a financial planner before taking a reverse mortgage.

Whenever you buy a home, consider living in it for at least five years in order to build equity and avoid losing money when you choose to move. If you live in each home long enough, you will be able to qualify for a reverse mortgage or even sell your last home and make enough money to retire.

House cleaning checklist

Nothing feels quite as good as a squeaky clean house. Our house cleaning checklist has 144 tasks and we promise, if you or your housekeeper complete all of them, your home will feel brand new. This checklist goes room by room to help you clean your home, and we even included a bonus spring cleaning checklist at the end for those times when you want a deep cleaning.

House cleaning kit & required supplies

Before we dive into the list, it’s worth calling out some of the supplies we think you’ll need to complete the job. We try to keep toxic chemicals out of our home, so we prefer natural & eco-friendly cleaning supplies.

Kitchen cleaning checklist

  • Clean dirty dishes
  • Put away clean dishes
  • Scrub kitchen sink
    • Disinfect sink strainer
  • Dust blinds
  • Wipe clean kitchen appliances
    • Refrigerator
    • Oven
    • Stove
    • Microwave
  • Disinfect & wipe clean kitchen counters and backsplash
    • Be sure to remove & replace all items
  • Wipe clean cabinet faces & hardware
  • Wipe clean tabletop and chairs
  • Disinfect light switches
  • Disinfect door knobs
  • Wipe clean electric plates
  • Wipe clean all woodwork
    • Baseboards
    • Window sills
    • Door frames
  • Empty trashcans & replace trash bags
  • Vacuum floors & rugs
  • Mop floors (tile & linoleum only)

Bedroom cleaning checklist

  • Change bed linens
  • Make the bed
  • Put away clean laundry
  • Put dirty laundry in hamper
  • Dust the room, including:
    • Lamp & lampshade
    • Picture frames
    • Blinds
    • Windowsills
  • Disinfect light switches
  • Disinfect door knobs
  • Wipe clean electric plates
  • Wipe clean furniture, including:
    • Top of dresser
    • Desk
    • Bedside table
  • Wipe clean all woodwork
    • Baseboards
    • Window sills
    • Door frames
    • Door panels
  • Clean mirrors
  • Throw away any trash
  • Empty trashcans & replace trash bags
  • Vacuum floors & rugs
  • Mop floors (tile & linoleum only)
  • General straightening

Bathroom cleaning checklist

  • Dust the room, including:
    • Blinds
    • Windowsills
  • Scrub, disinfect & rinse tub and shower
    • Wipe clean tile grout
  • Disinfect toilet inside and out
  • Scrub, disinfect & rinse bathroom sinks
  • Clean sink faucets & handles
  • Disinfect & wipe clean countertops
    • Remove & replace all items
  • Disinfect light switches
  • Disinfect door knobs
  • Wipe clean electric plates
  • Wipe clean any furniture
  • Wipe clean cabinet faces & hardware
  • Wipe clean all woodwork
    • Baseboards
    • Window sills
    • Door frames
    • Door panels
  • Clean mirrors
  • Throw dirty towels into the laundry hamper
  • Fold & hang clean towels
  • Throw away trash
  • Empty trashcans & replace trash bags
  • Vacuum floors, rugs, and bath mats.
  • Mop floors (tile & linoleum only)

Living room & other common areas

Includes hallways, stairs, etc.

  • General dusting
    • Ceiling fans
    • Blinds
    • Windowsills
    • Furniture on top, front, and underneath
    • Picture frames
    • Lamps & lampshades
  • Disinfect light switches
  • Disinfect door knobs
  • Clean windows
  • Clean mirrors
  • Wipe clean electric plates
  • Wipe clean all woodwork
    • Baseboards
    • Window sills
    • Door frames
    • Door panels
  • Throw away trash
  • Empty trashcans & replace trash bags
  • Vacuum upholstered furniture
  • Fluff & straighten cushions, pillows, throw blankets
  • Vacuum floors
  • Mop floors (tile & linoleum only)
  • General straightening

Spring cleaning checklist

Every so often you’ll want to go above and beyond your normal cleaning routine. We think this is the perfect spring cleaning checklist. But that doesn’t mean you have to wait until April! In some cases we’ll go through these tasks every 3-6 months.


  • Clean refrigerator and freezer interior
    • Remove & replace all items
    • Throw away any expired items
  • Dust top of refrigerator
  • Clean oven interior
  • Clean microwave interior
  • Clean pantry interior
    • Remove & replace all items
    • Throw away any expired items


  • Move bed & vacuum underneath
  • Launder blankets and heavy linens
  • Turn mattresses
  • Vacuum mattresses and box springs
  • Wipe clean bed frames
  • Machine wash or dry-clean comforters


  • Clean out cabinets
    • Remove & replace all items
    • Throw away any expired items


  • Clean shades & curtains
    • Remove, launder, and replace all items
  • Machine wash or dry-clean all area rugs
  • Shampoo carpets
  • Wash and wax wood floors
  • Clean book shelves
    • Remove & replace all items
  • Clean upholstered furniture
    • Machine wash or dry-clean any slip covers
    • Vacuum
  • Test smoke detectors and carbon monoxide detectors
    • Replace batteries if necessary
  • Wash windows
  • Remove & spray clean window screens
  • Clean or replace air filters
    • Furnace
    • Air conditioning
  • Clean out closets
    • Donate any clothing items that you no longer wear
    • Rotate seasonal wardrobe

What is a FHA 203k loan?

At some point, everyone has wanted to buy a fixer-upper, or at least considered it. There are tons of shows (Property Brothers, Flip or Flop, Flip This House, Flippa-dippa Ding Dong*) that sell the dream. Find it, rehab or remodel it, and then either live in it or flip it. Personally, I would love to find and old craftsman, buy it for cheap, put in some elbow grease and restore it to it’s former glory.

In practice though, buying a fixer-upper or remodeling a house can be difficult. A major issue is financing – construction loans are hard to get & have strict requirements.

fha 203k loan pros and cons

These guys haven’t struggled to get a loan in a while…

So what can you do if you want to buy a fixer-upper but you don’t have a ton of cash sitting around? Or what if you already own a home, but you just want to remodel? There’s a loan for that – the FHA 203k loan.


What is a FHA 203k loan?

A 203K loan is a specialty mortgage that is offered by the Federal Housing Administration (FHA). Often called a “rehab mortgage” or a “fixer-upper loan”, 203k construction loans were designed to help cover costs for rehabilitation, upgrades, home renovation or remodel.

203k loans are also an especially great choice for first time home buyers that want to buy a fixer-upper. It allows you to pay less for a house that needs a little love, and it provides you with extra money to renovate and remodel.

203k loans were created to solve a number of issues that come with traditional construction or home improvement loans. They make the process of getting a home remodel loan or buying a fixer upper much more simple.


Problems with construction loans

Normal construction loans can be a total monster. When construction loans go wrong, they can end up being incredibly expensive.

To start, they are usually short-term loans that are only designed to get you through the construction phase of your home. Once your project is complete, you have to refinance the construction loan and get a normal home mortgage, like a conventional or FHA home loan. Because of this, doing major construction means potentially paying for closing costs on two loans & wasting thousands of dollars.

On top of that, construction loans usually have variable interest rates, which can be risky.

As if that weren’t bad enough, construction loans are also generally hard to get. Zack has a great breakdown of what it takes to get a construction loan. It’s pretty rough.

Construction loans require a large down payment and a high credit score, making them difficult to qualify for.

To start, you need a pile of cash – as much as 30-35% of the loan balance. Plus you will need an additional six months of payments in reserves. That means if your home is valued at $400,000, and you get a 4% interest rate loan, you will need almost $130,000:

  • $120,000 for a 30% down payment
  • $8,020.56 for principal & interest reserves (6 payments of $1,336.76 for a $280,000 loan @ 4% interest)

These costs don’t take into account things like property taxes or homeowners insurance. Both of these items increase the cash requirements significantly.

If cash isn’t an issue, your next hurdle is your credit score. According to that same Zacks article, you need a score of at least 680 to get a construction loan. For loans greater than $417,000 that minimum FICO score bumps up to 700.

Combine these requirements together & you realize that construction loans aren’t a viable option for many home buyers. First time home buyers in particular would have a hard time making this work.

To make rehabilitating, remodeling, or renovating a home more accessible, the FHA created the 203(K) Rehab Loan.

The FHA 203K loan to the rescue

Officially called the “FHA Section 203(k) Rehabilitation Loan”, it was created to make home improvement loans more accessible to the average person.

what is a 203k loan

A 203k loan is a great way to buy a hidden gem and completely transform it.


Fun fact – it gets its name from the National Housing Act. The details for this loan are contained in “Section 203(K)” of the law. Mortgage companies aren’t the most creative, so the name stuck, but you will sometimes hear these called 203k “Dream Home” loans. I told you, not super creative.

Like a construction loan, home buyers receive extra money when the home is purchased, and they can use those funds to rehabilitate or remodel the house. Unlike a construction loan, this program falls under the FHA guidelines, so they are much easier to qualify for.

To start, FHA loans have a much lower credit score requirement – the minimum requirement is 580, sometimes even lower.

203k loans also have a much lower down payment requirement. Instead of 20% of the home price, borrowers can put as little as 3.5% down.

203k loans are way easier to qualify for compared to construction loans

For that $400,000 home we talked about earlier, you would only need $14,000 for a down payment instead of $120,000. For the first time home buyer, this is much easier to swing.

With a lower minimum credit score & significantly lower down payment requirement, buying a fixer-upper becomes a possibility with a 203k loan.


What improvements can you make with a 203k rehab loan?

We’ll dig into the different types of 203k loans in our next article, but for now I just want to point out that you can use them to purchase a new home that needs work, which is great for someone wanting to buy a fixer-upper. You can also refinance your existing loan with a 203k loan, which would let you make improvements on your current house.

So what improvements are covered?

203k rehab loans are very broad in their scope. You can use the money for minor repairs & updates, as long as the total cost is above $5,000 (the minimum amount to use a loan like this). You could also virtually reconstruct the house – the foundation just needs to remain in place, you could tear the house down and completely rebuild it. A rehab loan like this leaves you with a lot of options.

FHA 203k loans are perfect for kitchen remodels

There are some common uses that the FHA 203k loan covers, including:

  • Bathroom Remodels
  • Kitchen Remodels
  • Landscaping
  • Energy efficient upgrades
  • Heating & Air Conditioning Systems
  • Decks & Patios
  • Flooring
  • Plumbing
  • Roof
  • Siding
  • Much more.

Again, first time home buyers can really benefit from this rehab loan. With a small down payment, they can purchase a house that needs improvement, and use the money from the 203k loan for things like:

  • Taking care of necessary fixes, like updating siding or replacing a roof
  • Making updates to systems like heating, air conditioning, plumbing, or electrical.
  • Improving the living space. You can turn that attic into a bedroom, or add an outdoor patio or deck.
  • Making cosmetic updates like remodeling a kitchen, adding a bathroom, or updating the flooring.

Ideally, these updates will increase the value of your home, and you will get a return on your investment. But make a note, not all projects are created equal! House logic did a survey and found that some home improvement projects had a better return than others.

How much money can I get with a 203k loan?

The FHA makes it really simple to calculate how much you can get for repairs or upgrades.

First, the total loan amount must fall within the FHA guidelines for your area. These limits are usually determined at the county level.

The national limit for FHA loans is $271,050. However, there are many exceptions to this, and for some counties this amount can go as high as $625,500 – it all depends on where you live. To see what the limit is for your county, you can start here!

The loan amount includes the cost to purchase the home AND the cost of repairs – the total amount needs to be less than the county lending limit.

The next limit is based on the cost of the repairs & the value of the home. The maximum amount you can borrower according to FHA guidelines is the lesser of:

  • 110% of the appraised value of the property AFTER rehabilitation OR
  • The value of the property before rehabilitation plus the cost of construction

Did you catch that? Prior to closing the loan, the mortgage company will have an appraiser estimate what the home will be worth after the construction is complete.

They will give you enough to either cover the cost of purchasing the home & completing the repairs, or 110% of the value of the home when it’s complete, whichever is lower.

We’ll cover the actual process of getting a 203k loan & how they work in another article. But it’s important to know that the lender doesn’t just wire this money into your bank account. A 203k loan requires you to submit a construction plan, called a “work write up”. When your loan closes, your money will be wired into an escrow account.

As the work is completed, the money is released and given to the contractors. Unless you do the work yourself, you never actually touch the money – this protects the lender & makes sure the work is actually done on the house!


203k loan pros and cons

There are a few other pros that make a FHA 203k loan a great option:

  • You can close the purchase before rehab/repair work is done – Closing the purchase means the seller & your real estate agent both get paid upfront. There is no risk to them. From the seller’s perspective, there is nothing different when you use a 203k loan. In a competitive market, they may even appreciate the fact that you’re going to update the house. It may make you more competitive when you submit your offer.
  • Only one loan closing – As mentioned above, you only pay closing costs once. Your funds for construction are put into escrow when the loan closes, and then dispersed to the contractors when the work is complete.
  • The seller can pay up to 6% towards closing costs – this is standard for FHA loans, but not applicable to some construction loans. Many people don’t realize that closing costs are a negotiating point – and if the market is right, the seller can cover the closing costs on your 203k loan.

Nothing is perfect. 203k loans come with some cons as well:

  • Mortgage insurance (aka PMI) – This has less to do with 203k loans specifically, all loans with less than 20% down require this. But still, you can end up paying quite a bit every month in mortgage insurance.
  • The loans might take longer to close – These loans are slightly more complex then an average FHA loan. You’ll have to visit the property multiple times, get bids from contractors, and put together your “work write up”. These things are all minor, but you might want to add 15 – 30 days to your escrow to account for the delay.
  • You might not get a return on your investment – It’s easy to make “bad improvements”. Make sure to consider whether or not your repairs will actually increase the value of your home before you remodel. An extra bathroom is going to increase your home value, a three story waterslide not so much – you’re not the kid from Blank Check.



This is the first article of our 203k series. Over the next few weeks we’ll cover the different types of 203k loans, what it takes to qualify, and how to buy your own fixer-upper using a rehab loan. Make sure to sign up for our newsletter below so you don’t miss out!


*Flippa-dippa Ding Dong is not a real house flipping show. But you know that. If you were confused by the video of that teenager crooning over some sweet 80’s synths, get educated here.

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