Real estate flipping can be a profitable investment when you do it correctly. Buying and selling an investment house has a few pitfalls that we feel you should avoid if you want to maximize your returns. At the top of our list, you need to make certain that every penny you spend renovating your property is spent wisely.
There are many improvements that you can invest in to add more value to your house; however, if you are investing in the wrong fixes, then your real estate profit margin might result in gains that are less rewarding than expected. Therefore, you should only focus on the renovation tasks that cost little and yield the biggest returns.
Here are our top recommendations for improvements that can increase the profit of your house flipping investing:
When you are rehabbing a house, we feel that the smartest renovation a beginner should invest in first is to enhance your home’s curb appeal. Beginner house buyers could easily skip viewing the inside of your home if it looks unappealing from their car. Therefore, a small investment on the outside of your home can return nice profits.
Landscaping Adds Curb Appeal
Landscaping is a perfect opportunity to improve your property’s roadside appearance. It begins with creating a healthy, well maintained lawn. Thus, your grass should be cut frequently and the clippings removed. Also, if your lawn doesn’t have a pleasant green color, then you should add a fertilization treatment plan to rejuvenate it. Lastly, if any bushes or trees have been unattended for a long time period, then they should be trimmed too.
Your landscaping budget should be spent on highlighting the areas that will be noticed the most. Two of the most important areas to focus on are the driveway and front porch. Place attractive flowers, shrubs, bushes, and trees there to make your home more appealing. Also, potted plants or hanging plants can be placed around the front door to give your investment home a more pleasant, lived-in feeling. As a final touch, you can add small improvements, such as driveway light posts or a fancy mailbox.
Pressure Washing Outside
We strongly suggest to make sure the exterior walls on your flip have a clean appearance. It doesn’t make sense how many flippers spend a small fortune improving their home, but they overlook this cheap improvement. Paying someone to pressure wash your home is very affordable. It can cost only a couple hundred dollars. Furthermore, if you are on a tight budget, then you can rent a pressure washer yourself.
Focus On The Kitchen for Maximum Return
When ranking which places to do improvements, we feel that the kitchen is the most important room of the house to focus on. If you think about how much time a homeowner spends in the kitchen, then this makes perfect sense. Additionally, there is more opportunity in the kitchen for doing improvements that are easily noticed and impressive.
There are a few kitchen renovations that can drastically increase your home’s perceived value. You might consider replacing the sink and faucets with quality fixtures. Also, adding quality floor tiles creates the impression that the entire home is quality. Furthermore, new counter tops that are a little more expensive can create the same result.
Cabinets are a prime choice for upgrading. If you can find new cabinets that are very attractive and affordable, then purchase them for your kitchen. However, if there are no nice ones available in your budget, then you can improve your existing cabinets by replacing the doors and hardware on the cabinets.
New Windows Adds Huge Value
Nothing can make your investment feel cheaper than old windows and window frames. You should shop around for a deal early on, so that you will already have low priced windows before your rehab begins. Buyers will be reluctant to pay top dollar if they know that they need to replace windows later.
Paint is Relatively Inexpensive and Goes a Long Way
Painting is an obvious choice for a rehab flipping improvement. Paint is cheap, and it creates a new feeling through the entire house. By changing to colors that are currently popular, it makes an older home seem more modern.
Interior doors take a lot of beating and show wear. So, look for some nice replacements that won’t bust your budget. They don’t need to be fancy.
Thermostats are an improvement that many flippers don’t recognize the value of. When buyers see a fancy thermostat, it creates the impression that the property has a newer heating and cooling system. Therefore, it helps lead them to a buying decision more quickly, and you won’t get low offers because of a junky thermostat.
In conclusion, we hope these improvements help you focus on the upgrades that will earn you maximum returns for your investment. Evaluate each house flip that you do on an individual basis, and then you can more accurately decide which improvements are the best for that particular flip. By approaching your rehab with these proven high return tactics, you will not be wasting money that could be used more profitably elsewhere.