Real estate investors who flip homes want the highest profit possible, but cutting corners isn't always in your best interest. Although profit is important when flipping a house, some products and materials are worth spending a little extra money on. Not only will your project sell easier, but, in some cases, investing a bit more on certain things will allow you to increase your selling price and potentially increase your profit. This list offers the best products and materials that are worth your extra investment.
Flowers, Plants, Grass
As a real estate investor, you already know that curb appeal will help you flip your house easier. Spend the extra time and money to find the right plants and flowers for your property instead of randomly planting whatever free items that you find, or even worse, doing nothing. Purchase an inexpensive edger to go around the house, and plant flowers and plants that are appropriate for the climate and amount of sun on each side of the house. Take the same care with your property's lawn. Consider spending money on a lawn treatment or purchasing some sod to showcase a nice, green lawn without weeds.
Old rusty pipes pose a major problem for buyers. When you are rehabbing an old property, spend the money to replace the plumbing. It doesn't make sense to spend your money fixing up the inside aesthetics and covering up plumbing issues. Replacing the piping is not as much of an undertaking as you may think now that plumbers use plastic tubing. Appraisers heavily consider plumbing when assigning value to a home, so you will most definitely see the profit from this investment.
One of the easiest and most inexpensive ways to update your property is by replacing the light fixtures. Don't buy the cheapest possible fixtures, spend the money to carefully pick out fixtures that complement your property and fit with its overall aesthetic. Cheap light fixtures in higher end properties are unattractive to buyers. Conversely, overly extravagant fixtures in lower end properties look out-of-place.
If you opt for vinyl flooring in the kitchen and bathroom(s), spend the money for top-of-the line products. Not only do they look more expensive, but they are better at preventing dents, scratches and fading. You may also consider using vinyl tiles for a ceramic tile look.
You may think that cheap tile floors are better than nice vinyl flooring, but you would be mistaken. Ripping up a tile floor and replacing it is a costly and labor intensive project. When you decide to tile your bathroom or kitchen, make sure to spend the extra money on porcelain tiles, so your buyers don't need to replace ceramics. Porcelain and ceramic are made with the same process, but porcelain tiles are fired for longer and at a higher temperature in the kiln than ceramic tiles. This makes porcelain less porous and stronger so it is far more resistant to moisture and stains.
Choosing the cheapest possible appliances when flipping a house will make it more difficult to sell. Most real estate agents claim that stainless steel is the way to go these days, but stainless steel is quite a bit more expensive. Even if you choose not to spend the money on stainless, make sure to consider the size and function of the appliance. For example, are you flipping a three or four bedroom single-family home that a family will most likely purchase? In this case, consider that the average family of four wants to wash extra-large loads of laundry, so make sure your choice in washing machines and dryers accommodate this.
If you are considering a fix and flip project of your own, contact us for more information on financing options.
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