5 Tips To A Better Home Rehab Investing For Best Returns

5 Tips To A Better Home Rehab Investing For Best Returns


home rehab investing for best returns

As you plan your next renovation project, it’s more critical than ever to know what upgrades increase home value.  The world looks a lot different in 2022 than it did a couple of years ago, and our homes have been at the center of massive change and re-evaluation.

Before starting a house flip, make sure you identify where you are going to spend a lot of money and where you are not. While there may be cost overruns, that is what the contingency fund is for. If you end up overspending your rehab budget and contingency fund, you will end up losing money on your house flip.  We listed below some tips to guide you in your home rehab investing for best returns:

  1. Look At Comparable Properties

Don’t over-renovate.  Only spend on upgrades that add value.

The main key factor  in valuing residential real estate is location, location and location. This is important to remember when figuring out what improvements to add.

It is very easy to over improve a property and end up with a product that is beautiful, but overpriced for its location. While some buyers might spend a small amount more for a more improved property, they will not likely spend a significant amount more if there is nothing in the area selling for that high of a price.

  1. Establish a Strong First Impression

The lesson is to make sure that your property has great curb appeal.  The potential buyer looks forward to seeing what is inside.  First, you need to make sure that the structure itself is as nice as it can be. Power wash the siding, freshly paint all trim work, make sure that window casings are in good condition, etc. Doing easy cosmetic fixes can make a big difference.

Some suggestions for things that will give you a big bang for your buck include:

  • Dressing up the front door by painting it a contrasting color
  • Replacing old exterior hardware like door knobs
  • Making the entryway symmetrical
  • Installing outdoor lighting
  • Planting flowers and plants
  • Installing a new mailbox
  • Adding shutters

Most of these are not very expensive, but along with your marketing plan they will make a huge difference in attracting the right buyer for the best price.

  1. Kitchens and Bathrooms Sell the House

In the highly competitive residential home sales market, you cannot have a dated kitchen or bathroom and expect to get top dollar for your property. Not only are these improvements the key to getting a good price for your house flip, but they are crucial for getting people interested. They will surely decrease the days a property spends on the market.

Just remember, when improving a kitchen, it is important to make it safe and family friendly. For example, make sure that all electrical outlets are properly grounded and are the required distance from water sources. Make sure the floor is slip resistant and that counters have rounded edges.

With regards to bathrooms, it may be possible that the existing tile can be used, and the fixtures such as toilets and sinks replaced. Updating a shower door, or hardware in the room may be an easy fix. Like a kitchen, any work done must ensure that the room is safe.

  1. Don’t Impose Your Personal Style

Focusing on neutral design elements will appeal to the largest buying audience.

For example, you may think that bright green granite is a beautiful material for your kitchen counters, but many people may not agree with you. Big ticket items, like countertops, bathroom fixtures, carpeting and wall finishes should be in colors that appeal to the greatest number of customers.

Accordingly, soft, neutral colors should almost always be used. There is room to use bright colors and unusual materials as accents for the purpose of drawing attention to things, but they should never be predominant.

  1. Cost

Don’t invest more into the property than what the property is worth.

Flippers frequently get so wrapped up in projects that they stray from their business plan and drastically overspend on a property. When this happens, they are completely shocked when they do not make a profit on their flip. It is very easy to lose track of costs and over improve a property, in a desire to deliver a certain wow factor. While you do want that wow factor, you need to be careful about how to achieve it.

Remember – the end goal is to sell, so better focus on home rehab investing for best returns.  If you need more info, talk to us – CPD Homes, LLC! We are buying houses in Cleveland, and have been helping families and homeowners since 2012.  We’ve been working with home sellers dealing with – inherited properties, divorce, behind on mortgage, major repairs needed, sudden move, or for whatever reasons why homeowners sell their homes, CPD Homes is here to help.  We buy houses in any condition and all price ranges!  So call us today to discuss your property at 216-619-4387 – or click HERE to drop in your information and we will get back to you with a CASH offer!  We are here to assist you!

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