How to Rehab Wisely for Higher Profits
Whereas not all abandoned or distressed properties will require extensive rehabbing, many properties will benefit from a touch up. The question many homeowners have is: what real estate tip would be most beneficial in helping the bottom line?
First, there are two main rooms of any investment property that must be winners for you to become a successful real estate investor. The master bathroom and the kitchen are the two rooms which appeal most to the buyer’s emotions and are the main determinants for profit in any real estate rehab.
Kitchen
The kitchen is important because much family time happens around the kitchen table. The kitchen can be considered as the heart and soul of a home. Husbands and wives make crucial financial decisions while sitting at the kitchen table. Holidays are enjoyed, politics are debated and birthdays are celebrated at the kitchen table. In short, life is played out at the kitchen table. Therefore, it is vital that families are comfortable when sitting at the table as they deal with some of the most pressing issues that come up in a lifetime.
Since the kitchen is the center of emotions, this room should be made warm and inviting. It will not cost you as much as you may think, and the returns can stagger your imagination.
Cabinets
Whereas you could opt for custom built, brand new cabinets, there are some cost-effective solutions that can enhance your kitchen’s appeal without breaking the bank. Brand new handles and some fresh paint can give the impression of newness and can improve the general appearance of your kitchen. If the cabinets really look old, you could have the cabinets re-faced, which will cost you less than it would have to buy new ones.
Floors
At a minimum, you need to consider a linoleum floor of good quality. To go an extra mile, tiles are much better. Tiles can be bought at great discounts at various major home improvement stores. Having a durable floor can do wonders for the value of a property, since chairs can cause damage to linoleum when scraped or pushed across the surface.
Countertops
Whereas tile countertops can enhance the appeal of your kitchen, having the counter as the focal point can enhance your room and put the decision to rent or buy your home over the top.
Lighting
The significance of good lighting cannot be over emphasized. If you are showing a house, it would be helpful to use higher wattage light bulbs. However, while doing this, be careful not to exceed wattage suggestions of the manufacturer. When rehabbing, be sure to install adequate lighting since it makes the room look warmer and more inviting.
Major appliances
When moving into a new house, many people like to start out by getting new appliances. If your home has brand new appliances, even if they are not top brands, it will be more desirable to a prospective renter or buyer than one having old appliances, or none whatsoever. If you are planning to maintain the property as a rental, you may opt not to invest money in new appliances.
The Bathroom
While men are seen as disinterested about where they shower, the truth is that they would appreciate a nice bathroom as much as their female counterparts. Fortunately, bathroom renovations do not have to cost much to have a major effect on the appeal of this vital room. Examples of cost-effective installations and repairs are things like tile floors, countertops and double-welled sinks, along with adequate bright lights to help women make themselves up in comfort. To accommodate people with large bodies, it would be beneficial to consider ‘wide-body’ toilet stools and shower stalls that are not tucked into very tight corners or built very close to walls. While smaller corner stools or shower stalls can give average-size people a temporary feeling of claustrophobia, it might not work at all for plus-sized people.
No effective property rehab plan is complete without making certain that the rest of the home is clean, attractive and ready to be occupied. You don’t have to spend much on these modifications, and you will be surprised at the improvements you can achieve with a few superficial repairs. A new coat of paint in some parts of the home, along with new light, electric covers, clean carpet, and other small repairs will improve the property’s appearance, as well as its visual appeal.
Once you make these repairs, the demand for your investment property is likely to skyrocket, enabling you to command higher prices from potential buyers. You may opt to carry out the repairs yourself or have a contractor handle them for you. Regardless of your choice, make sure you begin your rehab wisely by following these guidelines. You should also ensure that you buy your rehabbing materials from vendors who will enable you to save some money and thus increase your profitability.
Stephan is a freelance writer, who often writes about wholesale homes .
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