Fix and flipping properties can be a very financially rewarding business if done correctly.
When remodeling a home, it is important to focus on the renovations that will give you the most bang for your buck.
Below we cover our top 5 renovation tips to boost your return on investment for your next fix and flip.
Many believe the kitchen is the focal point of the home. Study's show a 60% to 120% increase in ROI by remodeling this part of the house.
A fresh coat of paint on the cabinets, replacing door handles and adding some energy efficient appliances should do the trick.
Focus on your target pool of buyers and build them something they want, be sure to not make the kitchen more luxurious than the rest of the home in order to keep a balanced look.
2. Additional Bathroom
It is important to keep a good ratio of bathrooms to bedrooms.
For example, having a 3 bedroom and 1 bathroom home is not ideal.
Therefore, if remodeling a home with this type of floor plan one of the easiest ways to increase ROI is to simply build another bathroom.
Experts from HGTV say to expect an 80% to 130% ROI on this addition.
When analyzing a property to fix and flip make sure there is extra space to fit a bathroom.
Maybe there is an oversized room or other unused storage space where the bathroom could be added?
You only need 20 square feet to make this addition and it should be near the top of your list.
3. Finish the Basement
Oftentimes basements are neglected.
This unused and wasted space can be converted into a movie theatre room or game room for the children which can be very attractive to a potential family looking to buy.
This space could also be used as an additional bedroom to make sure every person in your family has their own room and private space.
By even just doing basic upgrades and leaving the next homeowner to choose what direction they want to go is also a great idea.
4. Add a Deck
People love to sit outside, taking in the fresh air and scenery. Decks are a great way of increasing a home's value with little investment.
Potential buyers will really appreciate this type of addition.
Depending on the materials you use and the size of the deck, expect to pay somewhere between $1200 to $10,000 for a completed deck.
5. Update Decor and Paint
Painting both the interior of the home and exterior is a great way to give a home a fresh new look. Painting is relatively easy and can be a do it yourself project. Be sure to pick neutral colors, something that will appeal to your buyer pool.
Improving your lighting fixtures can give a home a newer feel, as well as upgrading to more energy efficient lighting. Home buyers will appreciate knowing they can save on their electric bills in the future and going green is a benefit for the environment as well.
Install new flooring. New flooring can give a home a great new look and big department stores like Coles and Home Depot often have sales on tile flooring so be sure to keep an eye out for advertisements.
Fix and flipping is a great way to earn extra income and hopefully these tips prove to be useful to you when taking on your next project.