Fact is, home improvements for residential real estate investing is vital to the success of your enterprise. You must make minor and major home improvements to fetch maximum tenant rents and sales.
The trick is in knowing the right improvements to make to get maximum ROI and which ones just waste your hard-earned money.
I researched different experts on the topic and compiled their suggestions into this article.
Top 5 Home Improvements for Maximum ROI
Karie Fay wrote in her article on realestate.com called, Home Improvements Most Likely to Boost Property Value, the following
home improvement technique.
Outdoor Replacement Projects
Replacement projects will give you more added value than remodeling projects, according to Remodeling Magazine.
Fortunately for homeowners, these types of projects are also the least expensive and add to the home’s curb appeal.
Consider replacing the garage door (76.9 percent ROI), siding (76.4 percent ROI), the front door (90.7 percent ROI) and windows (73.9 percent ROI).
The magazine suggests fiber-cement or foam-backed vinyl siding, adding a steel entry door and vinyl window replacement.
Hgtv.com shared a blog called, Top 15 Home Updates That Pay Off, in which they shared a smart idea that you should consider for remodeling. You’ll find the strategy below.
Minor Bathroom Remodel
Average return at resale: 102 percent
It costs about $10,500 to replace the tub, tile surround, floor, toilet, sink, vanity and fixtures. You’ll get back an average of $10,700 at resale, a recoup rate of 102 percent.
If you can pipe a child’s name on a birthday cake, you can re-caulk a tub. Use a softener like CAULK-BE-GONE to get rid of the old caulk. Fill the tub with water after you’re done to stretch caulk while it dries.
If your old tub is too large to fit out the door, re-glaze it for a like-new finish. Cost: $300 to $400.
Remove dated wall coverings and apply a fresh coat of paint. For damaged walls, spray-on texture provides quick coverage.
Replace old shower doors or remove them to add the illusion of space.
NOTE: ROI values and home improvement remodeling costs are subject to change.
Jennifer Bradley wrote an insightful strategy on bankrate.com in a post called, 6 Home Renovations That Return The Most at Resale. She shared the strategy of focusing on kitchens. Read what she had to share below.
Minor kitchen remodel
- Average cost: $22,507
- Average resale value: $18,123
- Cost recouped: 80.5 percent
Creating a modern-looking and functional kitchen can add more than just value to your home: it can boost your enjoyment of everyday activities like cooking, entertaining friends and sharing meals with your family.
However, potential buyers see the intrinsic value of this kind of upgrade. On average, you’ll recoup a little more than 80 percent of the cost of a minor kitchen remodel.
In a remodeling project of this kind, you might replace appliances with new, more energy-efficient models, reface cabinets with new shaker-style wood panels, install new countertops, replace hardware, install a new sink and faucet, add new flooring and repaint.
Lisa Marie Conklin wrote an article, 31 Home Improvements That Will Double the Value of Your Home, on rd.com, in which she shared a hot tip you should consider.
New Flooring
Take a peek under your carpet and you may discover a home improvement ready to go. “Hardwood and tile floors add a level of warmth and are a definite return on investment,” notes Frellick.
Hardwoods, laminate, and tile floors are easier to clean and aren’t magnets for dust and dirt, so they’re ideal for people who suffer from allergies.
On moving.com, Laura Mueller wrote in her article called, The 6 Most Valuable Home Improvements, that wood decks should be a top consideration. Read her insights below.
Wood Deck Addition
Seeing a pattern here among the best home improvements? The renovations that give you the most value tend to be focused on the exterior of your home. And when it comes to your backyard deck or patio, wood is the way to go.
A composite deck addition or a backyard patio won’t yield you quite as much on the return as wood will at 82.8 percent (composite deck and patios yield an average return of 63.6 percent and 47.6 percent, respectively).
Remodeling recommends sticking with a 16 foot x 20 foot wood deck addition, though the right size for your home will depend on the size of your house and your yard. You’ll want to add a railing system as well for added function and stability.
Bottom line, as a real estate investor, you’ve got to preserve cash and maximize value for your tenants and buyers at the same time.
These are some of the top improvements you should consider making to your properties that deliver the biggest bang for the buck.
And the good news is, we can help you figure out the best home improvements to make to your property for maximum value personally.
Simply start by scheduling your PROPERTY PROFITS STRATEGY SESSION.
In This FREE 1 Hour Session, an expert real estate investment coach from our team will work personally with you to…
- Examine your current real estate investment portfolio/plans to see what’s working and what’s hurting. Discover where you’re making money and losing it.
- Search for the diamonds in your backyard, the low-hanging profit opportunities that can be made with minor tweaks.
- Diagnose the biggest roadblock to scaling your business fast and profitably.
- Present the best path for tweaking your investment game-plan so you can build wealth faster, with more predictability and stability.
Schedule your PROPERTY PROFITS STRATEGY SESSION today.
