owners are seeking out, whether they are a large family or people just starting out. Everyone has storage and living space needs, and it is easy to feel cramped or cluttered in a home that does not have enough square footage to support the owners’ lifestyle. In many cases, people are looking for a new home to buy because they have outgrown their previous residence, so it makes sense to meet their needs by providing adequate space.
However, for the standard fix and flip professional, simply tearing down a home and building a bigger one isn’t an option. Some fix and flip pros take this route, but it eats up a lot more of the renovation loan and can be much more work than building on to a pre-existing home.
If the fix and flip property is in good shape already, and there are viable options for adding extra space with an addition, this is likely a better use of your renovation loan than executing a tear down.
To maximize on the value added by an addition, there are a few things to keep in mind.
Ensure that your addition matches the rest of the home, in terms of aesthetics and feel. A traditional home will not work well with a super-modern addition, so do your best to keep things cohesive.
You should also try to make these added spaces as functional as possible – an extra basement or attic space could be a bedroom, an office, or a family room, but you can leave it up to the future homeowners to decide, giving them flexibility that will make your fix and flip home very appealing to potential buyers.
Not every square foot adding project has to be an addition. As previously mentioned, basement and attic spaces can be finished relatively easily, adding usable square footage within space that already exists. Don’t skimp on quality, but make these projects easy to handle and budget-friendly for the best results.
For more information about fix and flip strategies, please contact us. As hard money lenders with years of experience, we can help you find the tools for successful investing today.
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