As a lender, we see a lot of ideas about how a house can be fixed up and flipped for maximum profit. Some ideas are much better than others. The things that you may think add tremendous value are not always the best investments for individuals hoping to renovate and make a big profit. The problem with those ‘big ideas’ is that they often cost big money. It turns out that the most profitable investments are also the safest. The long term quality and dependability of your rehab should be your primary focus.
Bringing a Property Up to Standard
The first thing to remember is that if a property is below the neighborhood or city standard, you’re going to be investing more than just upgrades. You’re making sure that the basics are in place. Buyers will avoid a house with a leaky roof, cracked retaining walls, or weak and cheap floors or walls. And anyone interested in the only home on the block without air conditioning or a garage is only going to buy if the property is significantly cheaper. Start by making sure the property compares to the rest of the properties in town.
Kitchen and Bathroom Remodel
Old or outdated kitchens are a turn off for buyers who are willing to pay top dollar. Again, if you don’t upgrade the kitchen and bathrooms, you’re basically offering a discount to a buyer who is thinking of doing that work on their own. If you want buyers to see value in a home, don’t give them reasons to look for work they’re going to have to do.
Front Door Replacement
The front door is one of the most important aspects of curb appeal on the exterior of the home. A solid, fireproof, soundproof front door will look great and update the look of the whole front of the house. It’s not a huge investment to install a new front door and the return is ofter more than 100% of the cost.
Add a Deck
There are very few amenities that we can recommend for most rehab projects. A pool, for example, is a terrible investment unless every other home in the city has one. They’re expensive and the return is rarely worth the work. But a deck is consistently valued highly and can be done well without spending a fortune. Exterior space adds to the overall useable space of a home, which makes it feel like a luxurious extension.
If you are considering a property rehab project and need funding, Center Street Lending can make it happen. We lend in CA, AZ, CO, UT, TX, FL & NC, up to 80% of the property purchase price as well as 80% of your anticipated rehab costs. Give us a call today at 949.244.1090, or request a no-obligation quote online. We can fund your project in as little as 24-hours!
Center Street communications are not intended to provide business, legal, tax, investment or insurance advice. No Center Street communication should be construed as a recommendation for any business or investment strategy by Center Street or any third party. You are solely responsible for determining whether any investment, investment strategy, business strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation.