Updating an investment property is generally a sound strategy if it’s done the right way. The most successful investors abide by the mantra of ‘buy low, sell high,’ so they purchase rundown homes at bargain prices and save money on repairs by doing most of the work themselves—a little sweat equity goes a long way toward making a real estate investment profitable.
These hands-on investors carefully choose their remodeling projects, focusing on the ones that will yield the most value with the least amount of work. Part of the process involves paying attention to the other homes in the neighborhood so as to avoid over-improving the home, which happens more often than you’d think; it’s better to take the junkiest home in the best neighborhood and fix it up.
If none of the other houses in the area have crown molding or Corian countertops, adding those features is unlikely to result in a significantly higher selling price. Nevertheless, you just never know what you can do with a better lot and a decent home!
When addressing the most important rooms of your home, the kitchen and bathrooms, don’t overdo it. To make the most of your remodel, it’s best to keep these four types of projects in mind: basics, curb appeal, value-added, and personal preference. Stay tuned for my next video in which I’ll break down each of these project types and give you vetted vendor referrals for when it’s time to get work.
As always, reach out by phone or email if ever have any real estate-related questions or needs. I look forward to hearing from you soon.