{"id":171430,"date":"2024-05-03T15:46:30","date_gmt":"2024-05-03T21:46:30","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=171430"},"modified":"2024-05-27T01:48:50","modified_gmt":"2024-05-27T07:48:50","slug":"renovations-guranteed-to-result-in-positive-roi","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/renovations-guranteed-to-result-in-positive-roi","title":{"rendered":"The One Renovation Guaranteed to Increase ROI\u2014No, It\u2019s Not the Kitchen or Bathroom"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC1289592126\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">Gearing<\/span><span data-preserver-spaces=\"true\">&nbsp;up for your first rehab? Whether it\u2019s a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-find-foreclosure-and-pre-foreclosure-listings\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">flip<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;or&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/brrrr-method\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BRRRR<\/span><\/a><span data-preserver-spaces=\"true\">, I\u2019ve got earth-shattering news for you that will change everything you thought you knew about value-adds in real estate: If you\u2019re trying to build equity for leverage or to cash out and want to get the best bang for your buck, forget the roof, new furnace, kitchens, or bathrooms. You need to take it outside and spend some real money on landscaping.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But everyone knows kitchens and bathrooms are where the big money is made, right? Don\u2019t get me wrong\u2014you&nbsp;<\/span><em><span data-preserver-spaces=\"true\">should&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">update kitchens and bathrooms, but we are talking&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-roi-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">return on investment<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;(ROI) here. Kitchens and bathrooms are high-expense, high-return areas. Landscaping is a low-expense, high-return prospect.&nbsp;<\/span><span data-preserver-spaces=\"true\">You\u2019ll get a better&nbsp;<\/span><span data-preserver-spaces=\"true\">return on landscaping than you will<\/span><span data-preserver-spaces=\"true\">&nbsp;any other rehab expense.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">First Impressions Count<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">People ask all the time how much value-add there is for a new roof or HVAC system. Of course, the&nbsp;<\/span><span data-preserver-spaces=\"true\">value of the house<\/span><span data-preserver-spaces=\"true\">&nbsp;will increase if you go from a roof full of holes to a new roof, but that doesn\u2019t&nbsp;<\/span><span data-preserver-spaces=\"true\">really<\/span><span data-preserver-spaces=\"true\">&nbsp;give you ROI. People expect a roof to function when they buy a home. They expect the furnace to work\u2014that\u2019s not a value-add proposition.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When&nbsp;<\/span><span data-preserver-spaces=\"true\">you are<\/span><span data-preserver-spaces=\"true\">&nbsp;rehabbing a property, the goal is to get a better return on&nbsp;<\/span><span data-preserver-spaces=\"true\">your<\/span><span data-preserver-spaces=\"true\">&nbsp;investment than the 1:1 you get from functional, nonaesthetic items.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I\u2019ve flipped my fair share of houses<\/span><span data-preserver-spaces=\"true\">,&nbsp;<\/span><span data-preserver-spaces=\"true\">and&nbsp;<\/span><span data-preserver-spaces=\"true\">I\u2019ve<\/span><span data-preserver-spaces=\"true\">&nbsp;helped investors sell their flips many times.<\/span><span data-preserver-spaces=\"true\">&nbsp;It\u2019s almost like an epidemic\u2014they make the inside of the house beautiful and then say they have no money left over for landscaping. I\u2019ll make suggestions; they\u2019ll refuse.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The listing photos of the interior look&nbsp;<\/span><span data-preserver-spaces=\"true\">amazing<\/span><span data-preserver-spaces=\"true\">, and people roll up and get confused that this beautiful interior&nbsp;<\/span><span data-preserver-spaces=\"true\">is connected<\/span><span data-preserver-spaces=\"true\">&nbsp;to this terrible exterior with a lawn full of weeds and gravel. The truth is, if people are turned off by the front of the house but you&#8217;re still lucky enough to get an offer, you\u2019ll likely be paying double or triple the cost of landscaping in concessions.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With a reliable contractor, in many markets, you can spruce up a lawn and add a sprinkler system, some weed barrier, permabark, bushes, and flowers for $5,000 to $10,000. The ROI, in most cases,&nbsp;<\/span><span data-preserver-spaces=\"true\">is going to<\/span><span data-preserver-spaces=\"true\">&nbsp;be at least 2x.&nbsp;<\/span><span data-preserver-spaces=\"true\">Heck,<\/span><span data-preserver-spaces=\"true\">&nbsp;if your property looks so bad from the exterior that you can\u2019t get offers, the return will be far more than 2x.<\/span><span data-preserver-spaces=\"true\">&nbsp;You could almost view it as an&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-generate-infinite-returns-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">infinite return<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are buyers who are very discerning, especially in higher-end markets<\/span><span data-preserver-spaces=\"true\">, and they<\/span><span data-preserver-spaces=\"true\">&nbsp;don\u2019t care how nice the interior looks if the landscape is a mess. They just won\u2019t make an offer. If you are shooting for a price point in the upper 50% of the mean sale in your market, you can\u2019t afford&nbsp;<\/span><span data-preserver-spaces=\"true\">to&nbsp;<\/span><em><span data-preserver-spaces=\"true\">not<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">landscape.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">But Wait a Minute<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">\u201cI\u2019m just doing a BRRRR, so as a rental, I&nbsp;<\/span><span data-preserver-spaces=\"true\">really<\/span><span data-preserver-spaces=\"true\">&nbsp;don\u2019t care about getting offers.\u201d Oh, my friend, you need to landscape, too\u2014it\u2019s at least as&nbsp;<\/span><span data-preserver-spaces=\"true\">important<\/span><span data-preserver-spaces=\"true\">&nbsp;on a BRRRR as&nbsp;<\/span><span data-preserver-spaces=\"true\">it is<\/span><span data-preserver-spaces=\"true\">&nbsp;on a flip.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Trust me:<\/span><span data-preserver-spaces=\"true\">&nbsp;Appraisers are also people. Even though they use formulas and everything they do is \u201cobjective,\u201d they\u2019ll get a feeling about you and the quality of your work as soon as they pull up to the house.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I\u2019ve had many&nbsp;<\/span><span data-preserver-spaces=\"true\">a conversation<\/span><span data-preserver-spaces=\"true\">&nbsp;with an appraiser<\/span><span data-preserver-spaces=\"true\">&nbsp;who claimed their numbers were objective<\/span><span data-preserver-spaces=\"true\">,&nbsp;<\/span><span data-preserver-spaces=\"true\">but&nbsp;<\/span><span data-preserver-spaces=\"true\">went on to tell<\/span><span data-preserver-spaces=\"true\">&nbsp;me that they felt the quality and scope of a project were subpar.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><span data-preserver-spaces=\"true\">It\u2019s&nbsp;<\/span><span data-preserver-spaces=\"true\">important<\/span><span data-preserver-spaces=\"true\">&nbsp;that they get<\/span><span data-preserver-spaces=\"true\">&nbsp;a good vibe when they pull up to the house, too.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Bottom Line<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The next time you are looking at a rehab,&nbsp;regardless of your exit strategy, don\u2019t leave out the landscaping.&nbsp;You\u2019ll be shocked at how great it is to make a place look with just a few bucks and some sweat equity.&nbsp;I\u2019m a firm believer&nbsp;that some small bushes, flowers, mulch, and landscape borders can be the best investment you make on a property. Put aside 5% of your rehab budget for the outside of the next house, and you\u2019ll be a believer soon, too.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_260b66427f24e9e6d5fd361b6a050089\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_bae8015abcf5f1cebabc1a054b99f3dd\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_be873df9fc46c79e51538106a4db65fd class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/agent\/match\"\n        x-on:click=\"window.analytics.track('Blog Block | B2C Marketplace Agent Finder', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/renovations-guranteed-to-result-in-positive-roi',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/signup\"\n        x-on:click=\"window.analytics.track('Blog Block | Acquisition | Free Membership Signup', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/renovations-guranteed-to-result-in-positive-roi',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gearing&nbsp;up for your first rehab? Whether it\u2019s a&nbsp;flip&nbsp;or&nbsp;BRRRR, I\u2019ve got earth-shattering news for you that will change everything you thought you knew about value-adds in real estate: If you\u2019re trying [&hellip;]<\/p>\n","protected":false},"author":613697,"featured_media":171435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7392,7119],"tags":[],"class_list":["post-171430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rehab-diy","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/171430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613697"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=171430"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/171430\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/171435"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=171430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=171430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=171430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}