As a real estate investor, your primary goal is to seek ways to maximize your profits. If you ever watch HGTV, you most likely know that some home remodels can bring terrific return on investment.
While there is no guarantee that any renovation project will affect resale value, certain home improvements have been shown to provide a higher financial return than others. When planning renovations, keep this in mind: To add the most value to your home, changes should conform with the neighborhood and flow with the rest of the house.
The good news is that you don’t have to spend a small fortune on extravagant upgrades to boost your home’s value, which is why setting a budget is key.
Set a Budget
This is likely the most important step when taking up a remodel of any magnitude. Many people envision lofty home improvement projects only to get stuck halfway because they couldn’t meet their financial commitments.
Be sure to track every expense no matter how small or large and factor in costs such as legal fees and permits. By recording your spending and allowing some breathing room in your budget, you will be setting yourself up for success.
Some Home Improvements Projects to Try:
Kitchen Updates: Kitchen upgrades that include new cabinets and updated finishes are sometimes all that is needed to impress sellers and increase your investment home’s value. If your budget allows, replacing dated appliances with top-notch ones will definitely help you close a winning deal.
HVAC System: Giving the HVAC system an energy-efficient upgrade can provide an 85% return. Buyers will love the idea of a lower energy bill and be ready to pay extra for a new system.
Vinyl Siding – Curb appeal is the best way to lure in homebuyers. By giving your vinyl siding a facelift, you can expect a return of around 63%.
Fresh Coat of Paint: Painting the interior or exterior of your house is one of the most effective ways to increase the value of your property and enhance its curb appeal. When painting your walls, choose neutral colors that appeal to a wider range of people.
Would you like to speak with a member of the RLG team to discuss the value of your current investment real estate portfolio and determine areas for improvement? Give us a call today! We would love to help you with the properties you currently have and multiply your investment portfolio.