Almost everyone knows that remodeling a home increases the home’s value, but when you buy a fixer-upper to flip instead, you can’t expect much remodeling to have been done.
Since its inception, the house flipping business has done nothing but gain popularity and more and more people are making it their sole source of income. The business of flipping houses doesn’t come without its headaches though. One of those headaches is the repairs that have to be made before the house can turn you any type of profit. First, you want to know which repairs will get you the best ROI (rate of return on the money you have already spent). Below, you can find a few of the repairs you might see and need to make on your adventure.
Renovations With the Best ROI
You already know that you need to replace the roof, call in San Diego water heater repair services to replace the entire hot water heater, and other major investments to even begin to recoup your money. Those renovations are a given. Now, you need to know the best renovations to do to get the best ROI.
Update the Kitchen
While it’s true that the kitchen remodel will bring in only 66% of a return, it’s the first place that most potential buyers want to see when touring a home. The kitchen is where the heart is, is an old saying that has remained true for centuries now and it’s not going to change any time soon. There’s nothing like a kitchen that has not been remodeled or updated to scare off a potential buyer. Kitchen remodels are expensive and no potential homeowner wants that on their plate so soon after purchase.
As a flipper, it’s important to find the best possible contractor with the lowest prices. This isn’t to say you need to gut a kitchen that is in decent shape, just that a little remodeling and up-to-date appliances can go a long way when it comes time to flip the home.
Attic Rooms
Attics are no longer just the perfect rooms to be haunted in a horror movie, attic rooms are pretty popular at the moment. After all, what new homeowner couldn’t use an extra room? It is possible to recoup 73% of an investment when you turn the attic of the home you’re flipping into a possible bedroom for potential buyers. It’s one of the more expensive projects to take on as well, so you have to determine if the recoupment is worth the expense.
Renovations with the Worst ROI
Just as there are quite a few renovations with a high ROI when flipping houses, there are also quite a few that have a bad ROI.
Home Offices
While more and more people are working from home these days, most don’t need a full-blown office to work in. A home office remodel recoups around 43% on average and that’s on the high end. If you do decide to go with a home office, make sure the furniture is removable, just in case the new owners want to turn the room into something else down the line.
Adding on a Sunroom
While sunrooms were quite popular a few years ago, their popularity has started to wane. Adding a sunroom onto a home you’re planning to flip will recoup you maybe 46%. It is rare for a potential homebuyer to list a sunroom in their top three desires when they’re shopping for a home.
These are just a few of the best and worst renovations to do when flipping a home if you want to get a good ROI. Remember, the choice is still yours, but for most flippers, the money is the bottom line.
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