Let’s be real.
Renovations are a great way to reap some extra rewards from your real estate investments. Even shopping for a place that needs repairs at a discounted price is worth it!
Think about it.
The seller could easily do the renovations themselves and cash in on the extra profit, but they might be lazy. They might not have the time. They might not have the know-how.
That’s where you come in.
“Fixer-uppers” are a fantastic way to reel in some extra ROI. You’re about to find out which renovations can be made and how they’ll impact the property.
Let’s get started.
The Essentials
These are the necessities.
The basics. Anything that a normal person would expect from a quality house. For example, these basics could be solid floors, damage-free walls, a sound frame, working HVAC, proper plumbing, and many other aspects of a healthy house.
There are also preventative measures that may need to be taken.
It’s not just the things you can visually see. For example, making sure that the basement is not prone to flooding would be a good thing to look for. Or a furnace that wasn’t built with the house 75 years ago.
For someone looking to purchase a property, they’ll be looking for indications of possible problems. The last thing you want is for a potential buyer (or tenant) to see water damage in the basement closet or have the heat stop working while they’re viewing the house.
The essential renovations are on everyone’s main checklist.
Curb Appeal
These renovations may be less important than the essentials, but they do help.
You’ve heard of first impressions, haven’t you? I’m sure you’ve been told of their importance. So, picture yourself pulling up to a house with terrible landscaping or “curb appeal.”
The lawn isn’t mowed, the door paint is chipped, and the driveway is so dark you can hardly park your car.
The buyer (or tenant) will have already seen a con as opposed to a pro which may affect their opinion of the rest of the property. First impressions are huge, especially in the real estate industry.
The good thing about curb appeal is that these renovations are often quite cheap and easy for anyone to accomplish. You can hire a neighbor to mow the lawn, you can buy some new light bulbs, or re-paint the front door! It won’t cost much.
Curb appeal isn’t essential, but it sure does help.
Most Valuable
These are the renovations that get you the most bang for your buck.
Think of an upgraded kitchen or bathroom, an attic conversion, or maybe even a new roof and windows. Typically, you can expect most of the return upon resale (if not all of it).
Maybe you could rip up the old carpet and replace it with a hardwood floor. Or maybe you could just refinish the wood flooring that’s already there. Other options include solar panels or even a new deck.
Both renovations on the interior and exterior will get the job done.
These are a few great options to return the most on your renovations.