Fixer-Uppers What To Fix
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Fixer-Uppers: What to Fix
Summary
Thinking about buying a fixer-upper to flip for profit? Make sure you focus on the right improvements.Introduction
So, you've purchased a fixer-upper with hopes of turning a profit. What should you focus on fixing? It's crucial to know this before you buy, as discussed in another article, but let's explore some simple principles for choosing the right improvements.Return on Investment (ROI)
A young couple once told me they were disappointed to hear their home was worth $110,000 after spending $40,000 on a kitchen remodel. Unfortunately, their investment only added $10,000 in value. This is a prime example of a poor ROI.In the world of fixer-uppers, aim for changes that offer the most "bang for your buck." Seek a three-to-one return on improvements. For example, if you spend $1,000 resurfacing the driveway, it should increase the home’s value by $3,000. Even if you have to estimate, keep this three-to-one rule in mind to ensure a safe investment.
How to Improve a Fixer-Upper
Sometimes, the value added by small changes like new curtains can't be precisely measured. However, consider the combined effect of several minor improvements. Imagine how these changes will enhance the home's appeal and value.Small details often provide the best ROI, so start there. A new mailbox, flowers on the porch, or a neat yard can dramatically improve a buyer's first impression?"all for about $30 if you do the work yourself.
Other small yet impactful changes include shiny new switch covers, shelves, birdhouses, doorknobs, light fixtures, curtains, and new hardware for decks and paths. Stand in front of the house and visualize how small touches like flowers or a birdbath could boost curb appeal.
The Big Fixes
Certain repairs are essential?"basic systems must be functional. But improvements should also meet the three-to-one ROI rule. Creativity can help here. A colleague of mine added a wall for under $1,000 to create an additional bedroom, increasing the home’s value by $8,000?"a worthwhile investment.Bathrooms and kitchens are key areas. A $1,000 bathroom update can add $4,000 in value. A smart $2,000 investment in the kitchen (such as a new fridge, refinished cupboards, or a garbage disposal) could increase the sale price by $8,000. Choose universally appealing changes and ensure a good ROI?"don't, for instance, paint the kitchen pink just because you like the color.
Additional Improvements Worth Considering
Depending on the fixer-upper, many improvements can be valuable. These include adding a carport, doors, fences, gazebos, sheds, painting, carpet, benches, closets, toilets, stoves, shower/tub surrounds, and landscaping with trees or bushes. The bottom line is critical: ensure every investment returns more than you spend?"preferably three times as much.Conclusion
When renovating a fixer-upper, smart choices can significantly boost your ROI. Focus on changes that offer high returns while enhancing the home’s appeal and functionality.You can find the original non-AI version of this article here: Fixer-Uppers What To Fix.
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