How Much Is Too Much For A Kitchen Reno?

I recently had the opportunity to speak to Scott McGillivray, author of How To Add Value To Your Home, Cash Flow For Life, and host of HGTV's Income Property.

Scott is a wealth of information and shares it at his many seminars currently titled Scott's Wealth Tour..  He does flip houses but for the most part looks for the right home to buy to turn into another income property.  If you are thinking of doing this, I would highly recommend you attend one of his sessions.  More details available here.

I took the opportunity to ask Scott if he has a formula to know how much to spend or better put how much not to spend when renovating what can be one of the most expensive rooms, the Kitchen.  He uses a 5% calculation based on the value of the home.  His explanation below.