When you invest in fix and flip properties, you know that you are going to have to dedicate time, energy and resources renovating the properties that you purchase. However, there are some renovations that are worth more than others.
As you develop your house flipping budget, consider focusing on these 4 renovations to maximize profits...
Buyers often consider an updated kitchen a top priority, because it can bea challenging and expensive renovation for them to take on after they purchase the property. When you update and upgrade the kitchen of your fix and flip properties, not only can you list the property for a higher price but you also will increase its marketability. New appliances, cabinets, countertops and flooring should be incorporated into your kitchen renovation plans to maximize the return on your investment.
This one also tops the list as one of the most expensive home remodel projects for buyers to take on. Those who invest in real estate often have the ability to complete these renovations at-cost, making it more affordable and allowing them to enjoy a greater return on their investments. If you are interested in fix and flip properties, you definitely will want to complete bathroom renovations prior to listing the homes on the market again. Some homes may require a complete overhaul, while others may need fresh updates such as a new vanity, lighting and flooring.
A New Front Door
Curb appeal is necessary to marketing a fix and flip property. Many buyers won't even walk through the front door if they aren't impressed with what they see on the outside. A new front door can give a property a more distinguished look and boost the character of the house. A new entry door can have a resale value of more than $1,200, giving many investors a return on their investment of more than 90 percent. It sounds like a simple change to make with an investment property, but it can have a significant impact on the final sales price of the home.
Those who are shopping for homes today look at a variety of factors before they make their final decision, and livability plays a large role in their decision. It's become expected that homes have additional living space in their basements. To improve your ability to market your fix and flip properties, you should consider finishing the basements of the properties that you are renovating. Transforming the basement into a place where kids can play, friends can gather and families can spend time with one another appeals to many different types of home buyers. You may find that you enjoy a 70 percent return on your investment when you remodel the basement.
As you evaluate your house flipping budget and plan for your renovations, you also will want to consider your financing options. Hard money lending may be the best way to quickly get the funding you need to purchase fix and flip properties.