Pump Up The Value Of
Your Rehab Real Estate Investment
There are two legal ways to increase your wealth.
1. Keep more of what you have (e.g., tax strategies,
rehab efficiencies, cost savings)
2. Add value to something (e.g., a real estate
investment, stocks, bonds)
Let's focus on adding value to your rehab investments.
The most obvious is certainly bring it back up to
standards. We HAVE to do the obvious things such as:
- Ensure there are no plumbing leaks and the entire
plumbing system is in good working order, including
potable water and sewage/septic and water heater.
- Ensure the electrical system is safe and working. This
may require an upgrade. This includes all outlets,
breakers, heat and AC.
- There can be no leaks in the roof! Obvious, but
sometimes this is hard to determine if it isn't a rainy
season. You might have to take a garden hose to the roof
to be sure. Station someone in the attic with a
flashlight.
- Get rid of any rotted wood or termite damage, repair
walls, etc.
Those items I've listed and others like it are
no-brainers. But how do we really add value to the eye?
We make it pretty!
- We paint all walls and ceilings (usually bright white)
- We replace flooring, or if there is acceptable carpet
or tile, we professionally clean and restore it.
- We hang mini blinds on the windows.
- We trim trees and bushes, paint the outside make the
exterior look fresh.
Now, to get the sale, or to get it rented immediately we
do some of these things that really make a difference
(notice the emphasis on kitchen and bathrooms!):
- Replace or refinish the kitchen cabinets, sink and
countertop.
- Replace the toilet, vanity, and resurface or replace
the tub.
What if we want to really make OUR property stand out on
the market? What if we want there to be NO question as
to what a great house this is in the buyer's mind? What
if want TOP DOLLAR? Try these inexpensive upgrades!
EXTERIOR
- Put a decorative fence in front. Plant some shrubs
along the front of the house with attractive landscaping
bark around it for color
- Replace the front windows with something more
attractive.
- Install lighting along the walkway
- Plant a tree
- Install a new mailbox
- Build a deck in the back
- Increase the exterior lighting. Motion sensor lights
are a nice touch.
INTERIOR
- Install a security system. Sometimes the system is
installed free with a year's monitoring. Make the first
year of free monitoring (prepaid by you) a selling
point.
- Install a garage door opener
- Install a used hot tub. You might be surprised the
amount of folks who no longer want their hot tub!
- Include a microwave.
- Buy new appliances. Kind of expensive, but a deal
maker. Try making this an incentive for a full price
offer.
- Lay ceramic tile instead of vinyl.
- Go with snap-and-lock hardwood flooring instead of
carpet especially in a great or living room.
- Upgrade the faucet to something sleek and modern.
There are hundreds to choose from. Go with an extra
large sink.
- Replace the cabinet and drawer hardware to something
extra fancy. This can make an average kitchen POP for
little extra cost!
- Add ceiling fans instead of just new overhead lighting
fixtures.
- Add chair rail molding in the dining and living rooms.
- Buy the attractive switch and outlet covers instead of
the basic contractor grade covers.
We, as investors, need to make the rehab fit our
strategies. If we want to rent the property, you
probably won't add as many upgrades. If you are looking
to sell, and you need to get that property noticed, you
should add as many of the upgrades as possible within
your budget, especially the visual upgrades.
I hope this list has got you thinking creatively about
how to pump of the value of your next project!
About the author:
-------------------------------------
Bruce W. Ford is the editor of Rehab-Real-Estate.com Get
his important Special Report entitled "12 Things Real
Estate Investment Gurus Won't Tell You" at
http://www.Rehab-Real-Estate.com
|
|
|
|