When you’re planning to fix and flip your investment property, the considerations are often much simpler than if you were planning on doing them to your own home. After all, it’s not about your personal enjoyment of the property. As a responsible and diligent real estate investor, your focus should be entirely on how much ROI you can expect from each project and how that will affect the resale value of your property as a whole.
Unfortunately, determining ROI isn’t always straightforward. It can vary widely depending on market trends, your location, and a variety of other factors. The more accurately you’re able to predict the ROI of renovation projects, the better you’ll be able to respond to current trends by offering upgrades that are both meaningful and useful to a potential buyer.
6 Renovations To Help Improve the Value of Your Fix-and-Flip Property
So, how can you determine which renovations will add the most value to your investment property? Let’s delve into the renovations that have the most enduring ROI for your fix-and-flip, along with some tips on how to do them well.
1. Kitchen Countertops
Newly-renovated kitchen countertops are sure to increase the home’s overall appeal, depending on the home’s current features and your budget. These days, homeowners want to use their kitchen as a gathering place. As a result, many buyers are looking for an open-concept kitchen with newer features.
Improving countertops can deliver a good bang for your buck, but don’t believe someone that tells you only granite or marble will do. New synthetic stone offers a great look and is easier to clean and maintain. These durable countertops can offer an ROI ranging from 60-80%.
So many homeowners are looking for a move-in-ready home — and that desire extends to the home’s outdoor spaces. Improve landscaping by adding mature plants, trees, and new grass. This helps increase curb appeal while sending a message that the home is ready for new owners.
One study found that a few simple foundation plantings and thoughtful landscaping can increase a home’s value by up to 42%.
3. Bathroom Upgrades
You don’t need to make huge updates to see some real ROI on your next fix-and-flip. Even something as simple as replacing older bathroom fixtures with sleek chrome alternatives or adding a new faucet can offer an ROI of 93.5%. These fixtures should be timeless and can make even the simplest cabinets and vanities look new again.
4. Lighting Fixtures
Adding new lighting fixtures is a great way to quickly modernize your fix-and-flip in both aesthetics and performance. Installing new LED and smart lights can help to attract buyers who prioritize environmentally friendly features. Plus, it makes your property look and feel more updated. With a few simple lighting fixture upgrades, you can improve the ROI of the entire property.
5. Exterior Doors
High-quality exterior doors made from steel and fiberglass can offer an ROI of close to 100%. These upgrades are a great combination of looks and security. On the one hand, their design can help improve curb appeal. At the same time, the materials and strength improve the safety of the property.
6. Interior Paint
Many renovations can add value to your home, but one that offers a high value for money and effort is updating interior paint. If the property that you purchased has dated or damaged paint, adding a bright new coat throughout the house can enhance its value. This type of project costs an average of $967 (depending on the size of the room and paint quality) but offers more than a $2,000 increase in value. That’s a 107% ROI!
Determine the Upgrades That Offer the Best ROI With PropStream
Many people who fix and flip homes have become skilled at making sensible upgrades that can offer great value for money. However, trends come and go, and what works in one neighborhood might not necessarily pay off as well in another.
Having access to the latest market data can help you make smarter decisions on how to use your cash on upgrades that will bring the most value to your property. PropStream puts robust market data at your fingertips. You can research each neighborhood and determine the ideal renovations for each property. Our Rehab Estimator feature helps you determine the cost and value of your renovation based on unique market data pulled from your ZIP code.
Want to see how it works? Click here to start a 7-day free trial today.