How We Help You Budget Backward from ROI Goals
At J & S Construction LLC, we've perfected a modern approach to renovation planning used by the top 15% of investors. Our strategic budgeting method has increased client profits by 22% on average through data-driven decision making that eliminates costly emotional choices.
Start With the End in Mind: Your Target ROI
Set Target ARV
Begin with your desired After Repair Value (ARV) or monthly cash flow target
Calculate Budget
Work backward from profit goals to determine maximum project budget
Apply ROI Formulas
Use industry-standard calculations that factor in all expenses
Build Reserves
Reserve 1-2% of purchase price annually for unexpected capital expenditures
The Backward Budgeting Framework
ROI Goal Setting
Establish clear profit targets
Market Analysis
Set spending caps based on neighborhood comps
Financial Modeling
Create detailed projections including vacancy rates
Itemized Budgeting
Prioritize ROI-generating improvements
Our backward budgeting approach follows the 50% rule for operating expenses, ensuring half of rental income covers non-mortgage costs while maximizing your return on investment.
Building Your Renovation Scope Based on ROI—Not Emotion
Data-Driven Decisions
We prioritize improvements based on market data and proven ROI metrics, not emotional attachments to design trends or personal preferences.
The 80/20 Principle
We focus on the 20% of upgrades that deliver 80% of value appreciation, ensuring your investment dollars work efficiently.
Market-Appropriate Finishes
Our selections match neighborhood expectations, preventing costly overbuilding while meeting target buyer or renter expectations.
ROI Ranking System
Each potential improvement is evaluated and ranked based on its contribution to your bottom line.
Material Selection: Balancing Quality and Cost
High-Impact Materials
We identify materials that create maximum visual impact for minimal cost, focusing on buyer perception points like kitchen counters and bathroom fixtures.
Our strategic selections can reduce material costs by 15-25% while maintaining the appearance of high-end finishes.
Our value-engineered alternatives maintain quality appearance while significantly reducing your renovation budget.
Why Overbuilding Eats Profits
The neighborhood ceiling effect means investments beyond a certain point yield diminishing returns. Our analysis identifies your market's ceiling to prevent costly overbuilding that erodes your profits.
Our Process: From Analysis to Execution
Initial Analysis
Free property evaluation and ROI calculation to establish realistic targets based on market conditions and property potential.
Budget Creation
Development of a detailed backward budget with prioritized improvements ranked by ROI impact and market relevance.
Value Engineering
Expert consultation to maximize visual and functional impact while maintaining strict budget guidelines based on profit goals.
Execution & Tracking
Professional project management with weekly progress updates and rigorous budget adherence to ensure profit targets are achieved.
Get Started: Request Your Budget-First Consultation
20%+
Profit Increase
Average client ROI improvement
$0
Initial Consultation
Free 30-minute ROI analysis
100%
Satisfaction
Client approval rating
Ready to maximize your investment returns? Contact J & S Construction LLC today at email info@jsconstructionllc.com to schedule your free budget-first consultation.