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.
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.
Thanks for the feedback!
@JIMMY PASCHALIS I tend to look for properties with great bones but that are extremely outdated.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.
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.
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