Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
If there is one thing that people in the tri-state love doing, it’s house flipping. Also known as the house “fix and flip,” this is a form of real estate investment that involves buying a home, fixing it up to look better or have better amenities, then selling it at a profit. When you’re flipping a house, you must make sure that you choose low-cost projects that offer a high return on investment. Picking your projects isn’t always easy. If the house in question has something egregiously wrong with it, then you should focus on that. However, if your home is in decent condition, you wonder how to make the most of your investment. To help you figure out which ones are the best picks for flips, let’s look at the research we found below. Then to finance those projects, you can look for fix and flip loans.
House fix and flip is a national sport. House flippers love buying rental properties with money loans in the context of low-interest rates. A real estate investor is looking for a unique property for fix and flip deals where the purchase price is as low as possible.
If there is one fast and easy way to give an old home a facelift, it’s by adding some paint to the equation. Interiors are made brighter and cleaner with the right coat of paint; the more prominent seller is a new coat of exterior paint. Studies show that painting outside your home is one of the best housing projects in terms of ROI.
You don’t have to get a complete makeover to get a massive return on this investment. Choosing the right door color alone can add as much as $5,000 to your house’s price tag.
Before you paint, completely sand the tile surface to prevent bumps and to peel. Afterward, clean the tile with a stripper and cleaner, add a new layer of grout and repair cracks, apply primer, and paint away!
A white or off-white, like an eggshell color with a gray or blue-gray contrasting color, is excellent for the exterior and provides a friendly, clean curb presence. The interior kitchens, bedrooms, and bathrooms can be Gray, Beige, Blue, and some Off-white colors.
Paint quality is not as crucial as most paints require the 2nd coat anyway, so why pay more for higher quality. Flat paint will hide most imperfections in the existing wall.
Landscaping might be the only other project to come close to the return on investment that paint can give. It makes sense, and the look of your home’s exterior will be the first thing potential buyers see. As a result, spiffing up the landscaping is an excellent way to make your home look more well-kept.
Studies show that landscaping alone can have as much as a 103 percent return on investment. So, if you spend $3000 on landscaping, you might be able to get as much as $6000 back in terms of your home’s price.
Studying the Real estate market, if you upgrade your landscape from “poor” to “good,” you can expect an estimated increase in the value of your home of 5-15 percent. What constitutes a “good” landscape is subjective, so comparing your investment property to recently sold homes is helpful because it gives you a basic idea of what local buyers were attracted to when selecting the house they bought.
Generally, you can expect to spend 5-10 percent of your fix-and-flip property’s ARV (after-repair value) on landscaping. The good news is that you can expect to get all of that back immediately in increased value. For a $200,000 home, that would mean a $10,000-$20,000 landscape upgrade; for a $500,000 home, it would be $25,000-$50,000.
The grass of a flipped house is always greener on the other side. If you want to impress potential homebuyers, this isn’t a landscaping project you can avoi, and it’s one of the most impactful visual factors when guests first see a house.
You can make the grass greener by adding either fertilizer or grass seeds. It would be best if you did this upon first buying any house. That way, by the time you’re ready to sell, the grass will already be fuller and greener.
Not everything should be added to, though. This is true, particularly if the house already has some serious trees or bushes on site. You need to make sure you trim up any crazy leaves or branches before you try to sell the house.
If you want to get fancy, consider buying some simply light fixtures. Potential homebuyers will appreciate all the thought that went into their new home with such an elegant touch. Don’t be afraid to invest in the finer quality light fixtures you find.
I might be a little biased since I am a food critic, but I love a good kitchen. Kitchen updates are one of the most frequently demanded upgrades to a newly flipped home. This includes offering new appliances, cabinetry that isn’t outdated or even installing a new kitchen backsplash. This is a great way to stand out among buyers’ keen eye for making good food at home.
Though a complete kitchen remodels is often the most popular way to make this happen, you can still reap some profound benefits with a quick “mini-model.” Studies show that this can add as much as $15,000 to a home’s value.
Everyone has seen a bathroom that was in dire need of remodeling help. We’ve seen it left and right, up and down, and it’s never good. Ailing bathrooms take on many forms- cracked grout everywhere, severe damage to tiling, awkward color schemes from the 1970s- you get the deal. Regardless of why it needs a remodel, it’s time to consider remodeling it.
Therefore, improving the look of your bathroom can add thousands of dollars to your overall home value. In cases where the bathroom is so bad that it is a liability, this could even be a remodeling project that may be mandatory before selling the place.
It helps prevent leaks, keeps your home’s interior dry, and helps sell your house to others.
People can often tell when your home’s roof is terrible by driving by it. This is one of the most expensive upgrades you can make to your home, and your real estate agent can make recommendations.
However, an upgrade will boost your home’s sellability, even in the most challenging economies. People know and understand the importance of a new roof. So, why not offer one up if you plan to fix and flip properties?