How do you increase the value of your properties?

5 Replies

Hi,

Within a year my goal is to purchase my first property with a partner. He has a background in construction so renovations is an option. What would you say are the best strategies or renovations to increase property value (for ex. renovating the kitchen)? I'd like to have ideas for what to look for in a property that we could fix or change in order to increase property value. The plan is to hold but increase equity so that we can leverage for a second property.

Thank you

Demetri 

If you have questions on what or how much it would cost to do repair you can always ask 

curb appeal, kitchen, bathroom. Update and get rented. The rental rate drives the value.

@JIMMY PASCHALIS    I tend to look for properties with great bones but that are extremely outdated. This allows you to purchase the property at a significant discount because a lot of people don't want the hassle of a renovation. At that point I pretty much gut the whole place and start from scratch. If you know what you are doing and buy your materials correctly it will not cost too much to fix up an apartment or a small house. This is turn increases your equity position significantly. Again the most important part of this is to purchase correctly. Give yourself the room to force appreciation. 

@JIMMY PASCHALIS

From a formulaic position, your best bet is add beds/baths at the low end.  Solid jump for 3/1 -> 3/2.  Not as much for 4/2 -> 5/2.  This obviously varies market to market.

Paint is probably the best bang for your buck.  I haven't researched it deeply, but I would imagine that painting a place would increase it's salable value the most by %.

If your plan is to fix and grow equity make sure you pick your market correctly.  You want a market on the rise.  The appraiser is the important person to appease with your renovations.  You want a market that is more valuable than when you started the reno AND you want the nicest place on the block.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here