Not all renovations are the same and every investor knows there are renovations out there that fail to add value to a property, wasting your time and hard-earned capital. Do you know the 6 best repairs for a fix and flip property? Continue reading to learn which repairs will help to add value to your investment property.
Best Repairs for a Fix and Flip
Renovate the Kitchen
The kitchen is where your buyers will be spending the majority of their time, there’s no doubt this is why so many investors look at the kitchen first when renovating their homes. Unlike the living room, the kitchen wears it’s age openly, sometimes needing more than just a fresh coat of paint. If you go for a full renovation, consider your existing floor plan and if it is functional. It’s common for an investor to add a kitchen island or move appliances if the existing floor plan does not equal functionality. If your kitchen just needs some light touch ups, consider exchanging your cupboard handles or adding a coat of paint as these simple swaps can make your kitchen feel like new.
Focus on Bathroom Fixtures and Efficiency
Your bathroom will stand out to buyers because this room, like the kitchen, wears its age openly. Replacing a shower or adding tile to an old linoleum floor can provide visual appeal for an otherwise boring room. The value of your property will increase if you decide to swap out old fixtures like faucets, handles, and cabinetry hardware. The best repairs don’t always involve complicated floorplans or expensive materials. Experienced real estate investors know that even the smallest renovations can increase a property’s value.
Add Curb Appeal
First impressions matter in real estate, meaning your landscape should look immaculate when a buyer first sees it. If your yard is dry and dead, this can be very unattractive for a buyer. You should aim to be selective with how you present the front of your property, aiming to create a homey feel for a buyer’s first impression. Some sot and potted plants can go a long way, consider sprucing up your curb appeal when deciding the repairs to perform on a fix and flip property.
Add More Living Space
Want to know an easy way to instantly increase your property’s value? Consider adding more living space by investing in additions that expand your current floorplans. Although this repair is far from cheap, adding more living space can open up your home to more buyers on the market since the extra living space can be used to house family, collect rental income, or even store belongings. Before making the large commitment of adding more living space, make sure to do your research and crunch the numbers to see if it makes sense for your property.
Focus on Marketability
Depending on your property, there are specific renovations that will add more value than others. When deciding on renovations, think about your current target market and the trends that seem fit to their likings. Many investors make the mistake of not doing the proper research on their target market before deciding their property’s renovations. It’s important to know your market when renovating so you don’t waste time on unnecessary additions that would fail to add value to your property and only waste capital.
Many properties do not have finished basements, which isn’t always a bad thing especially for an investor who wants to create their own potential with the space. If you want to add value to your basement, consider remodeling to meet the needs of your target market. Rather than going all out, focus on areas that would create value for a buyer like building laundry space or a work area. An unfinished basement can be transformed into anything you like, just make sure your additions are value worthy.
RCN Capital offers short-term and long-term financing options for real estate investors. Whether you are looking to fix & flip properties or hold properties for rental income, RCN has flexible options that are suited to your needs. Connect with us today to discuss your next real estate investment.