Home Renovations: How to Get the Biggest Return on Property Investment


Renovating and flipping homes can be a fun DIY creative project—and a lucrative venture. Making money flipping homes depends on getting valuable renovations done quickly to improve the value of the property, and then turning around and selling it for a profit.

The key to making money from house flipping is to know which renovations to invest in for the highest return. If you are serious about turning a fast profit with house flipping, follow these tips to get in and out of your investment property with the least time and biggest return.

Make a Plan
You likely want to get done with renovations quickly and move onto your next project, so taking time to make a plan and budget might feel like an unnecessary slowdown. However, rushing into renovations is a recipe for failure: it can lead to costly mistakes and budget blowouts that push back your project deadline.

Instead, begin with plenty of research. Take a look at the neighborhood and be realistic about how much someone would pay to live there, renovations or not. Investigate how much similar renovated homes sold for, and estimate how much you can expect to earn from your property. Work backward from this price point to determine which renovations you will complete on the home. Create a budget and stick to it through the project. Get multiple estimates on the repairs and make sure that you’ll still be able to turn a profit.

Paint 
Interior and exterior painting is the cheapest—and one of the most profitable—cosmetic changes you can make to an aging property. Paint and painting supplies are generally cheap, and painting is often something you can do yourself to avoid contractor costs. Even if you hire a painter, the job will still add a fresh look that will bring in quick returns on your investment.

Bathrooms 
Even the smallest updates in a bathroom can go a long way in terms of return on investment. If a full remodel of every bathroom isn’t in the budget, make as many small changes as you can afford: replace wallpaper, paint pink bathtubs white, update lighting, and replace handle fixtures. These are all quick repairs that can be done inexpensively.

Kitchen 
Put the most money and time into renovating the kitchen. This is one of the most attractive features in a home and can make or break a potential buyer’s opinion of the property. Update everything from cabinets and appliances to flooring to create a modern look that’s sure to sell. Prioritizing the kitchen over other rooms will make sure you get as much out of the property as you can.

Landscaping
The lawn and yard is the first thing potential buyers see when they approach a property. Make a great first impression by doing some simple lawn care—keep the lawn mowed, trim overgrown bushes, and plant colorful flowers. There’s no need to go overboard with fancy landscaping, but a little effort can go a long way. Save on labor costs by doing most of the work yourself.

The key to making money in home renovating is to purchase, fix, and sell as fast as you can. By focusing on these important repairs, you’re sure to get the most out of the money and time you put into your investment property.

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