Fixing and flipping seems to be all the rage right now. In many markets there is still ample opportunity to benefit from this niche. As the market tightens however it is ever more important to make sure that your rehab dollars are being spent wisely. By using the concepts below you can achieve great results when improving a property for resale or rental value. In each case you can reduce your costs while still achieving the look, feel and value increase you’re looking for. Arguably the most important room in a property is the kitchen, so we’ll focus on it for this entry. In order to maximize your profit potential here’s seven super focal points to remember.
1. Don’t replace the cabinets; refinish or resurface them. The cost to resurface cabinets should be about 25% of the cost to replace them. For most properties the need is for an updated image, not a more functional cabinet. New doors or a simple refinish with updated hardware will in most cases achieve your goals in less time and for less money, thus increasing your profits.
2. Don’t replace working appliances, refinish them with aftermarket enamel. For a few hours work in a light sanding, cleanup, taping and painting, you can have the look of fresh new appliances for a tenth the cost of buying new. In most properties a light coordinating color (most frequently white) will be your best bet. They go with anything and will look clean to buyers or renters.
3. Don’t tear up and replace old linoleum floors or vinyl tiles, so long as the floor is level, go over it with laminate flooring. This flooring goes down fast and is usually floating over the existing floor on a cushion of foam matting. These floors wear well and look great. The savings in demolition time and effort alone is a huge saving.
4. Don’t replace dining room (or other appropriate room) carpeting, if there are hard wood floors underneath the carpeting, with very few exceptions, you should refinish them. Hardwood floors are a high-demand item. If you’ve got some in place, the cost to refinish can be between 25% and 50% of the cost to carpet. The beauty of newly refinished hardwood will help sell any would-be buyer or renter and will result in a direct increase in the value of the property.
5. Add full backsplashes above countertops and under cabinets. Even if you just take the backsplash from the top of the four-inch rise of molded countertops to the bottom of the upper cabinets, the updated look and feel will be immediately apparent. Use coordinating tiles, natural stone or decorative glass tiles. A simple but attractive design will help even more. They look beautiful and improve the visual appeal dramatically.
6. Update old out-dated lightening fixtures. For a relatively small investment you can make a remarkable improvement in the look and function of a property through updated lightening. The use of ceiling fans and decorative fixtures will give an upper-scale feel to a property and make it significantly more appealing. That translates into higher demand and higher value.
7. Repaint with neutral earth-tone colors. If you maintain a neutral feel to a property, a buyer or renter will be better able to mentally move themselves in. Personal tastes, no matter how good, should not be used in picking paint. You want the property to look, smell and feel clean, fresh and open. Light off-white or basic earth tones will be your best bet. You’ll be able to buy them cheaper than colored paints and since you’ll be painting multiple surfaces it will mean less prep time, less clean up, less cutting in and less overall costs. This once again translates into higher profits.
There they are; seven secrets the pros use to maximize their profit potential and minimize their rehab risk. We hope they help. If we can be of assistance, it would be our pleasure. Have a great day and go out and make some money with real estate.
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