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Hearing the words “home renovations” can send many people running, trying to escape the seemingly hefty price tag that is associated with home projects. For real estate investors, and especially experienced flippers, renovating or updating properties is par for the course. However, not all renovations are created equal. Things like a property’s condition and age can help determine how extensive—and expensive—renovations need to be.
We’ll dive into some of the most cost-effective yet necessary remodeling tips every fix-and-flip expert should make room for in their budget. Ideally, any renovations that are taken on should fall under one of these four project types: basics, curb appeal, value-add, and potential buyers preferences.
These could run on the pricier end but are the necessities that need to be covered in any property that is being renovated to go back on the market. Things like functioning gutters and downspouts, walls that are in good shape, a roof that doesn’t leak, and sturdy floors all fall under the umbrella of basic renovations.
Of course, flippers do scoop up distressed properties, so avoiding all these projects is nearly impossible. Reality is that a couple of these are bound to land on any investor’s list.. The key with all basic renovations is to bring the property to code without tapping out of resources and money by going overboard with remodeling projects, with the end goal is to sell the property and keep a profit margin. .
It’s important to note that working on these home improvements doesn’t necessarily add value to the property—it merely brings the property up to the standard of the surrounding homes in the neighborhood or community.
As we mentioned in another recent piece, adding curb appeal to a property is massively critical to how it’s approached by potential buyers. Keeping a clean and attractive front and backyard won’t add a ton of value to the property, however curb appeal can help it sell faster. Low-cost landscaping like a fresh coat of paint on the front door and fence, redoing the address numbers, and even planting a few flowers helps set the stage for what buyers will be facing indoors.
Curb appeal can extend beyond the driveway, too. Consider the entryway, a mudroom, or any wall fixtures that sit in these high traffic entry areas as spots worth investing a little extra time in.
For both a property’s outdoor and indoor entryway, a little bit of effort goes a long way in how buyers perceive the house.
These projects range from new floor finishes to new kitchen countertops and everything in between. Regarded as the fun part about flipping property, these projects are ones that can be both delegated to others and done as DIY. Here are a few of the most popular and cost-effective methods to renovating fix-and-flip houses:
Living Room — Replacing flooring is one effective way to elevate a room’s ambiance and change its identity. With so many different types of floor materials—stone, tile, vinyl, hardwood, and so on—and at different price points, there are many ways an investor can update the look and feel of a house without blowing their budget. Vinyl flooring today is not that of yesteryear’s! Quality, look, and feel of materials have changed drastically to give rooms polished, updated looks at affordable prices.
Kitchen — Doing a complete kitchen makeover can put a hefty dent in the bank account, but if a property’s kitchen is in pretty good shape, investors can afford to be strategic about where—and how—they use their money.
If the cabinets look good, investors shouldn’t feel like the need to replace them. Sanding, painting, and new hardware can make any cabinet look brand new. Money saved on cabinets can be put towards new countertops. Sturdy, well-crafted, modern countertops will not only completely change the look and feel of the space, they will also go the mile for whoever the new homeowner will be.
Swapping out the backsplash is another way to freshen up an old kitchen. Options for backsplash materials vary widely and it’s an easy enough DIY project that won’t break the bank.
Bathrooms — Bathroom renovations can feel a bit like kitchen renovations; sinks, countertops, storage (or lack thereof), and cabinetry all play a role in how a bathroom looks and feels. And much like the kitchen, if the cabinets are in good shape, investors can ditch the idea of replacing them and focus instead on refurbishing and swapping out the old hardware with new ones.
If refurbishing existing materials isn’t an option, either due to condition or a severely dated look, there are many inexpensive alternatives that still add character and style.
Potential Buyers Preference
For investors who are keen on personalizing a property towards the potential buyer market , are working with larger properties or bigger budgets, personal preference projects can range from adding a swimming pool to adding a wine cellar.
Regardless of the project an investor takes on, it’s important for them to go into the work with a clear timeline, budget, and plan. And a great partner for financing, and that's where Temple View comes in. Contact us to finance your next project.