What remodel projects produce the greatest return at sale?

Question

As a new investor my resources must be spent wisely on a fix and flip. What home improvements produce the greatest return on investment?

Brian Pulaski · Answer

This is property specific in my mind. Some houses I have seen value add from dumping a bedroom for a bathroom. Others I found value add for opening up the living space. Still others I have found not doing anything structural to be the best option. Adding beds and baths seem to be value adds, assuming you can do it fairly inexpensive. Personally I like to open up floor plans, fluff up the kitchens and baths with nice tile (showers, backsplashes), granite, stainless appliances and other touches people notice (bathroom niches, wine racks, soft close cabinets). These things don't cost a ton (this is in my scenario, because I usually am the one doing this work so it is just my time, verse a sum of money from a GC) and people always love them.

Brian Pulaski · Answer

I have done houses that would really only appeal to a new home buyer/younger couple and homes that I would expect to sell to a family with moderate income. As of today I have not done a lot of houses but have had FHA buyers, VA buyers and conventional buyers. The majority of my buyers have been women actually.

Debby Bates · Answer

Thanks Brian. I also prefer to have an open floor plan with pretty kitchens and baths. Who are your target buyers?According to the agent I'm working with buyers in this area are moderate income who need to buy FHA, with younger families who value a fresh look even if it is not new, 3-4 bedrooms, off street parking and fenced yard. So I'm torn between a family two-story or a one floor with two master suites for the adult child who remains home or caregiver who takes care of the owner. Haven't done this long enough to figure out my niche.