Staging Your Rehab Investment Property to Sell

As a real estate investor, you may have to make decisions when it comes to selling your rehab investment property.  Staging may be one of those decisions.

Staging allows homebuyers to envision a livable home, while an unstaged home paints a clean picture of how their furniture and decorations would fit.  You should ask your realtor to run a market analysis of days on the market between stages homes and empty homes.  This can be the deal breaker if you are on the fence regarding staging your investment property.  This analysis can provide information on whether staging is a good return on investment.  According to the Real Estate Staging Association, staged properties spend less time on the market and sell for more money. Staging

When staging, make sure the home is well lit, decorations vary, and furniture is grouped in the middle of a room to make it look larger.  Mirrors can be great additions to make rooms look larger and to reflect light to make rooms brighter.

Do you stage your property, or leave it empty?  What tips do you have for other investors when it comes to staging?

Is It a Seller’s Market?

Living in Columbus, Ohio, the phrase “Seller’s Market” has been used over and over lately.  Real estate agents are marketing their business to homeowners (who might not even been looking to sell) because they have clients looking to purchase homes in certain areas.

The Indianapolis market is highly competitive.  Homes are selling faster than they have in years.  Many houses are getting multiple offers, so homebuyers are having to go well over the asking price.

All-Cash BuyersIs it a seller’s market or a buyer’s market in your area right now?  Does the market change how you handle your rehab investment properties?  Does it determine if you will keep the property as a rental?

According to CNBC and RentRange, “some of the most lucrative rental markets with rent gains of more than 17% annually and an average gross yield of nearly 11.27%” include Knoxville, TN; Syracuse, NY; and Charleston, NC & SC.

Real Estate Investors Should Update Front Door and Landscaping to Help Sell Properties

Besides a “For Rent” or a “For Sale” sign in the front yard, curb appeal draws the attention of house hunters.  Most homeowners know the basics of good curb appeal – cut grass and clear walkways and driveways, but have you ever considered something to draw the eye?  What about a pop of color by painting the front door?  Or planting colorful flowers or updating landscaping?

2016 Popular Front Door ColorsPainting the front door and changing the light fixture can make a big difference to the look of a house.  Some of the popular front door colors for 2016, include turquoise, teal, dark blues, dark purples, dark greens, and of course neutral colors.  What color do you use on your own front door?  What colors do you use on your investment properties’ front doors?

Landscaping can easily increase a property’s value from 5% to 11%.  Make sure your landscaping matches the interior and exterior look of your house.  You do not want conflicting design techniques.  Make sure that the trees and flowers that are planted will receive the adequate amount of sunlight, and that they will bloom during the season in which you plan to rent or sell the property.  Also, use a variety of plants to create diversity to make it interesting.  What are some of your favorite plants to use at your investment properties?

Preparing for Taxes as a Rehab Investor

As we have mentioned in previous blog posts, including Building Your Team: Who the Seasoned Investor Knows, it is important to add trusted professionals to your rehab investment team.  One important team member to have is a CPA, or financial advisor.  CPAs will be able to answer all your tax questions and direct you to get the most out of your tax return.  Remember to keep all tax documents for up to at least 7 years.

CPAs will tell you to keep track of everything.  Over documenting is better than missing something.  It is important to keep all bills and receipts that pertain to your real estate rehab business.  Your CPA will be able to tell you what is tax deductible and what category it should be placed under.  To help with tax preparation, put your receipts into folders by category.

Read examples of tax deductions here.

Some self-employed individuals find it helpful to keep a calendar full of payments, purchases, miles, etc.  This allows them to look back each month to see their business activity.  How do you handle preparing for taxes?

ReCasa Financial Group Can Help With More Than Rehab Financing

Ever wonder if ReCasa Financial Group offers real estate loans in addition to 100% financing for rehab investment properties?  Good news!  We do for those in Ohio, Pennsylvania, and Indiana.

If you need cash out, need to refinance because the loan has matured, need to pay off outstanding debts, and/or need a loan that does not fit the cookie cutter bank loan, ReCasa can help.  The maximum term is 24 months, and the program includes purchase, refinance and construction costs.

Contact Erik Williams at ewilliams@recasafinancial.com or 614.221.6770 x 245 for your financing needs.