8 Improvement Ideas for Rehabbers to Succeed at Flipping – Part 1

As has been true for the past years, buyers have the upper hand when it comes to a real estate purchase, which creates obstacles for rehabbers to overcome.    Rehabbers need to balance between prudent choices while investing in features that buyers might desire.  This will help real estate investors become more successful in terms of return on investment when flipping.

Below is the first in our two part series, 8 Improvement Ideas for Rehabbers to Succeed at Flipping, that we want to share with you.

1.  Landscaping

As the saying goes, “First impressions are everything.”  The first thing buyers see is the outside of the property.  It is critical that the rehabber draws in buyers.  If buyers do not like the look from the outside, then they will have a negative perspective going forward while touring the interior.  You want all potential buyers to fall in love with the place from the curb.  The landscaping helps to welcome buyers into the home.  Landscaping can be a simple fix if you make the effort to keep the grass cut, flowerbeds weed free and mulched, and place a few plants and flowers around the outside of the home.

2.  House Exterior

In conjunction with landscaping, the rehabber needs to consider the overall exterior of the house, as this is part of the curb appeal.  Dirty windows, chipped or faded paint, broken items, and signs of neglected maintenance will decrease the value of a home.  It is important to have functioning gutters and downspouts, in order to divert water away from the foundation to protect property.  Other things to consider are any structures such as fences, decks and sheds.  Are these additions helping or hurting you?  Addressing these exterior items will not only increase your value, but will show potential buyers that you take care of your investment.

3.  Water

Pools, hot tubs, waterfalls, and ponds may seem like a great addition to any rehab project, but to buyers they might be seen as another expense to maintaining the property.  Buyers will not only need to pay for the running of each item, but also for the upkeep overtime.  These items can also be seen as a potential danger to families with young children.  If the buyers fall in love with the home, but dislike the water features, they may ask for it to be removed which will become an additional unwanted expense for the rehabber.  If the buyers really want a water feature, they will be able to add it in themselves.  This is a luxury option that the rehabber should leave up to the buyer.

4.  Kitchens

Kitchen Renovation

Kitchens are one of the most important aspects of a home.  Families want to envision hosting parties and teaching their children how to cook in a beautiful kitchen.  Kitchens can be an expensive renovation, but the good news is that it is reported that you can recoup up to a 90% return on investment.  Large budgets for kitchens can include all new appliances, cabinets, counter tops, and flooring.  If you want to opt for a smaller budget, fresh paint, new door handles, and updated lighting are always easy.   A kitchen renovation can have a large impact on the buyer’s view of the home.

What improvement tips do you have for other rehabbers?  Tell us about them and help other real estate investors become successful!

Remember to come back next week to read about the remaining 4!