After you close the deal on an older, undervalued home in the perfect area, it’s only natural that you’re ready to begin maximizing your ROI with the right renovations. However, the problem for many up-and-coming house flippers is that they overspend on renovations, which eats away at their projected profit. Sometimes, investors cannot find buyers willing to pay the asking price after an expensive house flip. If this occurs, investors may need to lower the asking cost until they’re losing money instead of earning a profit.
As a general guideline, investors will yield better results by following the 10% rule, which states that rehab costs should not exceed 10% of the home’s purchase price. Spending exorbitant amounts of cash on luxury features rarely maximizes your ROI in the long run. As an investor, it’s better to make low-cost renovations that are primarily aesthetic rather than intensive. Try these ten inexpensive upgrades when renovating your investment property to earn the highest profit possible.
1. Fresh Paint
A fresh coat of paint on your investment property’s siding can give even the dreariest of homes a bright uplift. Of course, many investors choose to go with a crisp shade of white for their house flip, but there are countless options to choose from when trying to balance the interior and exterior aesthetic of the property. For instance, selecting a dark, deep color for an accent wall is a clever interior design trick that can highlight interesting architectural features that may otherwise go overlooked. Giving your property a fresh paint job is a simple, straightforward step that can give you an ROI of over 50%.
2. New Hardware
Hardware is at the top of the list when considering effortless and inexpensive upgrades for your investment property. Hardware, which describes anything that can be touched by hand, such as cabinet doors, hinges, knobs, and handles, are inexpensive fixes that can transform your property’s entire look in hours. Many house flippers create a modern, clean appearance through neutral hardware that makes a cohesive appearance and increases the property’s value.
3. Better Outdoor Lighting
The right outdoor lighting fixtures add style and value to virtually any property. High-quality outdoor lighting requires the perfect balance of functionality and beauty while also enhancing the property’s inherent tone. Moreover, the purpose-driven placement of outdoor lighting fixtures appeals to many buyers who don’t want to go through the hassle of installing more lighting fixtures in and around the home.
Additionally, the lighting fixtures on the front porch set the first impression before potential buyers step inside the home, so choose an option that stands out from the rest. When selecting lighting for cover patios, consider suspended outdoor lanterns that engender a warm, cozy feeling ideal for social gatherings. Simple lighting and brightening installations can increase your home’s value by nearly $1600.
4. Updated Landscaping
As a rule of thumb, house-flippers generally spend 5 to 10 percent of the property’s after-repair value on landscaping. Fortunately, you can anticipate earning this cash back since the landscaping increases the home’s value. Trimming unkempt hedges and tree branches is a great place to start if your landscaping budget is limited. In addition, planting brand new flower beds and eliminating any patches of dead grass will enhance the property’s overall curb appeal for a faster sale and a higher return on your investment.
5. New Shutters and Mailbox
Given that many investment properties are older or unkempt, there is a good chance that the house has a few outdated features — typically the shutters or mailbox. Total window replacements may add value to a property but are too costly for a house-flipping project and don’t balance out your ROI. However, installing modern shutters and a new mailbox are fantastic ways to improve a home’s curb appeal.
Not only are new shutters aesthetically pleasing, but they also improve insulation in extreme weather conditions. Meanwhile, a sleek, modern mailbox is your very first impression to potential buyers and will imply that you, the property owner, have addressed even the smallest of details in your house flip.
6. Crown Molding
Updating crown molding is one of the easiest ways to add character and value to your house flip, sparking visual interest while making the room appear larger. Most investors install crown molding in bedrooms, living rooms, and dining rooms for a tasteful finish because of its inexpensive nature and ability to unify a home’s architectural design.
Brand new crown molding is an inexpensive upgrade that can complement the rest of the home’s architecture for an elegant appearance that potential buyers will notice.
7. Bathroom Caulk
You’ve likely seen aging caulk at least once in your lifetime. It begins browning along the edges, then becomes dry and cracked. Once this occurs, mildew starts to grow, and water seeps behind the wallboard. Since many older investment properties haven’t been properly maintained, there’s a good chance that you’ll need to refresh the caulk between tiles in the tub and around the sink. Luckily, caulk is inexpensive and easy to apply. This quick fix should only take an hour of your time, and you can find the supplies at your local hardware store.
8. Update the Backsplash
The kitchen is one potential homebuyers assess before purchasing a home. To create more value without ripping out everything from the studs, you can add character to an opaque kitchen by simply updating the backsplash.
Installing a traditional tile backsplash is often too time-consuming for a house flipping project, so consider refreshing the backsplash with a sheet of solid surface material to minimize the labor hours required to improve the kitchen’s look. To complete this project, you’ll need to shape, cut, and glue the materials for a polished refresh of your existing kitchen.
9. Change the Ceiling Fans
In warmer climates, ceiling fans are crucial for homeowners because they generate a much-needed breeze, which reduces the reliance on air conditioning.
Also, when the weather is cold, ceiling fans ensure that warm air continues to circulate, which keeps the house nice and cozy. A ceiling fan installation is so easy that even someone with little to no home project experience can get the job done right.
10. Refinish the Floors
If your investment property has old, scuffed wood floors, consider sanding and refinishing them. Shiny, well-maintained flooring is a relatively simple way to ensure that your house flip earns you a higher profit. If the flooring appears too damaged for refinishing, consider using vinyl, linoleum, or laminate flooring. These options are half the cost of tile or wood, and the installation process is straightforward.
Find Your Next Investment Property with Call Motivated Sellers
These uncomplicated renovations are easy compared to the other labor-intensive and expensive options involved with building a lucrative house-flipping business. If you’re interested in optimizing your time and finding more investment properties, professional cold callers can support your efforts.
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Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads year-round. We have years of experience cold calling in the real estate industry, along with access to the best information for buyers, sellers, and agents to help you close more deals.
If you’re ready to leverage the power of cold calling for wholesaling, Call Motivated Sellers is here to help. To learn more about the services we offer, just contact our team today!