If you’re planning a fix and flip investment in the near future, you already know that your success (and your profit) will depend on which renovations you choose to undertake.
Deciding on the scope of work can be a tough choice to make, but ultimately, you’ll want to aim for renovations that are widely appealing and impactful, while still being affordable enough to keep from eating into your profits.
In that spirit, here are some of the hottest, most affordable renovations that fix and flip investors should consider for their next investment property.
1. Hardwood Floors
If your fix and flip property has carpeting or laminate floors, you should consider tearing it up and replacing it with hardwood floors.
While carpeting may be cheap, it also needs to be replaced every 10 years, holds onto smells and odors, and can look terrible if not properly maintained. Hardwood floors, on the other hand, are about 3x as expensive, but look beautiful, are nearly universally appealing, and can last a lifetime. Or, if hardwood floors are outside your budget, we’d recommend a suitable replacement that comes with a similar aesthetic appeal like tile, cork, or bamboo.
While carpeting is sometimes seen as a fad-gone-by, hardwood floors (oak especially) are a perennial classic that, at the very least, are guaranteed not to offend any potential buyers.
2. Fiberglass Insulation
Whether it’s the dog days of summer or the bitter cold of the winter, there’s nothing like walking into a home that’s just the right temperature for habitability - especially if it can be kept that way at a reasonable price. The easiest way to do so? Fiberglass insulation.
Installing insulation in your fix and flip property assures buyers that they won’t receive outrageous gas or electric bills, and that they’ll be able to live in comfort. If you’re doing the work yourself, this is a relatively small expense (a few hundred dollars) that proves you care not just about the appearance of the house, but the nuts and bolts as well - it will also boost your bottom line and make the house attractive to a wider range of buyers.
3. Exterior Work
Once you’re done with the inside of your fix and flip, you can move onto the exterior. In order of the expected cost, here are three ways to give your house some instant curb appeal:
- New front door
- New garage door
- New siding for the house (vinyl)
A front door and a garage door will run you a couple thousand dollars, but these costs are reflected by the increase in your fix and flip’s ARV. New vinyl siding can be a little more expensive (depending on the size of the house) - this project is best undertaken only when the existing siding is in serious need of replacement.
As for any cosmetic work, while there’s no accounting for taste, it’s best to choose neutral colors towards the darker end of the spectrum - these have wider appeal, can match details like shutters or lining, and will hide dust, dirt, and wear better than brighter colors.
The Bottom Line
As is true for any type of real estate investment, when you’re undertaking a fix and flip, you should have the buyer in mind with every decision you make. Above all else, this means effective, lasting, and widely appealing renovations that can be achieved at a reasonable price.
If you’re interested in learning more about fix and flip investing, you can familiarize yourself with some of the essentials.