In order to make money on your flip means that you have to carefully consider where you’re going to spend your money. Certain renovation projects give more of a return on investment than others. It can be difficult to juggle multiple flip projects at once and still turn a profit. You have to have a plan for each renovation as well as a source of funds.
The first place to start is the assess the state of the property. This will give you an idea of where your dollars will make the greatest impact. Once you’ve made this determination, here are five essential renovations for any fix and flip property.
1. Add some curb appeal to the home.
This type of renovation doesn’t have to cost a lot of money. In general, cleaning up the landscaping is a good place to start. Pruning bushes away from the exterior of the home, and creating defined planter beds can change the appearance of the outside. You want to focus your efforts in such a way as to attract potential buyers. Add some color in the form of flowering bushes or other types of flowers.
If the front door is still in good shape, class it up by adding a fresh coat of paint. Select a color that will provide a point of interest when people see the property.
Consider having the roof cleaned instead of replacing it. This can give the appearance of a new roof without having the extra expense. All of these little touches will give the appearance of a well maintained home. This can attract more buyers to the property, and drive up the sale price.
2. Complete some kitchen upgrades.
You don’t have to completely gut the kitchen and start over from scratch. In fact, this is a very costly proposition. An upgraded kitchen will help to sell the home quicker. Unfortunately, there isn’t as much of a return on your investment if you overspend.
Consider other ways that you can make the kitchen work to your advantage. Using the old cabinets is one way that you can stay within budget. If the kitchen design isn’t functional, look at other ways that you can make it so. Remove the cabinets, and rearrange them into a more conducive pattern of flow. Add a fresh coat of paint and new hardware to change the style elements in the kitchen. Replace items judiciously so that you can make the kitchen appear more modern without breaking the bank.
3. Re-imagine the bathroom situation.
Bathrooms are another place where it pays to renovate. HGTV.com says that in 2018, even a minor bathroom remodel stands to return 102-percent of value.
When it’s possible, keeping the plumbing in the same location will save you a lot of money. Add a fresh coat of paint to the vanity, and use similar countertop materials as the kitchen. You may be able to save some money by using scrap materials left over from the kitchen countertop.
You don’t need to replace all of the bathroom fixtures. This is a costly proposition. Consider giving them a deep cleaning in order to make them appear new. You can also refinish them to save a little bit of money. Select materials that are of moderate quality so that you can stay within budget. Sprinkle design elements throughout to make the bathroom appear more modern.
4. Finish out unfinished spaces to add more square footage.
Basements are a great place to add some extra living space. This can make the property worth more to prospective buyers. Adding bedrooms and bathrooms into this area will also increase the sale price of the home. This is something that you should take into consideration if the home is on the smaller side. For example, if the home is a three bedroom with only one bathroom, this renovation will give you a better return than if the home already has four bedrooms and two bathrooms.
In homes that are larger, adding a family room will give you a greater return on your investment. Take into consideration the size of the home when deciding the best course of action for adding square footage. It may be better to do higher quality finishes as opposed to adding more space for these types of flips.
5. Add a unique feature or finish to give the impression of high design.
Having an accent wall in the living space can generate more interest in buyers. You can also do this in a bathroom by selecting accent tiles for the tub or shower surround.
Another project you can do is to add a more expensive backsplash behind the stovetop. The point is to give the impression of the home not being exactly like every other home in the neighborhood. You need to be careful when doing this as to not go overboard. Make your goal to be simple and understated. Going for elegance and beauty can make the home more attractive to a potential buyer.
Another thing you can consider is to dress up the backyard with a unique feature. A fire pit or patio area may be the ticket to selling the home for a higher price.
Just remember to focus your efforts on renovations that will pay off. You may be tempted to remodel a home to your individual tastes. Being emotionally invested in your projects won’t give you the return that you need. The point of flipping homes is to do so quickly and efficiently. To be successful, hit the key money making updates to attract the largest number of buyers to the property.
Call Orchard Funding today!
The first step to any fix and flip remodel is funding. That’s why contacting Orchard Funding is the first step on your quest to build a fortune by becoming fix and flip royalty!
If you are a fix and flip investor, contact Orchard Funding to talk to a loan adviser today to secure what you need to have your properties give you the best return on your investment. Call Orchard Funding at (310) 356-7373 today.