Top 5 remodeling things that increase the value of a property?

20 Replies

@Alfonso Aramburo Zepeda   It depends on what needs to be done.  A fresh coat of paint can do wonders, updating hardware on cabinets can be inexpensive and make a big difference.

Make a list of what NEEDS to be done and how much it would cost.  You could have option A: essentials and B: ideal for each room.  Don't go overboard with the renos.  You are not renovating it for you to live in, but want it to be good, with durable finishes for the tenants.

@Josh Bakhshi All that is needed, mostly indoor remodeling.

I was thinking on starting with painting, then jump into flooring, then counters/cabinets. Now, I'm not sure what would add more value to the property. The idea is just to remodel the minimum necessary to increase the ARV.

Getting the property for 350K and comps are 370-450K.

Originally posted by @Alfonso Aramburo Zepeda :

@Theresa Harris

It needs paint, cabinets, flooring, countertops. I guess I will have to figure out cost per sq ft for each one of those things to come up with a realistic number. Hopefully it doesn’t end up being more than what I budgeted lol.

For cabinets, are the current ones in good shape and just dated?  You can paint them (get the right paint and prep them properly) and add new hardware.  If you are painting the rest of the house yourself, get a 5 gallon bucket of paint-it will be less expensive and should be more than enough and leave extra for touch ups later on.   Good luck!

Originally posted by @Alfonso Aramburo Zepeda :

@Josh Bakhshi All that is needed, mostly indoor remodeling.

I was thinking on starting with painting, then jump into flooring, then counters/cabinets. Now, I'm not sure what would add more value to the property. The idea is just to remodel the minimum necessary to increase the ARV.

Getting the property for 350K and comps are 370-450K.

Are you trying to flip or brrrr? 

Originally posted by @Alfonso Aramburo Zepeda :

@Josh Bakhshi

Brrrr is the idea by occupying the house for a year, rent it out and then moving onto the next one using HELOC or cashing out any equity gains.

 Most of the things I mentioned and you agreed on are meant to flipping.  They tend not to bring value from an appraiser perspective as much as a new buyer.  So I would really limit the renovations.

Originally posted by @Michael Ablan :

@Alfonso Aramburo Zepeda - Thats a tiny budget

1.) Wall Paint

2.) Paint cabinets

3.) Landscaping

4.) Anything blatantly ugly or broken

I will follow in that order so it looks decent enough when I move out from the property and gets rented at a good price. Hopefully by doing that, appreciation gets forced.
This has been of much help, appreciate it! 

Originally posted by @Alfonso Aramburo Zepeda :

@Josh Bakhshi All that is needed, mostly indoor remodeling.

I was thinking on starting with painting, then jump into flooring, then counters/cabinets. Now, I'm not sure what would add more value to the property. The idea is just to remodel the minimum necessary to increase the ARV.

Getting the property for 350K and comps are 370-450K.

that's a super wide spread for comps. not knowing the condition of this property, it's hard to say what top items you need. kitchens and bathrooms add the most value, so i would look at those, but your budget is very limited and i still question your arv calculation. Are you going to owner-occupy this house?

 

@Victor S.  
Yes I am going to live there while improving the house. The average of the houses in a .5 mi radius is 420K. 

The property looks cosmetically in bad shape, carpet stained, horrible smell (cat/dog pee), smudges in walls, beat up cabinets with damaged hardware, jagged laminate countertops, stinky & dirty bathrooms. The whole combo!

Originally posted by @Alfonso Aramburo Zepeda :

@Victor S. 
Yes I am going to live there while improving the house. The average of the houses in a .5 mi radius is 420K. 

The property looks cosmetically in bad shape, carpet stained, horrible smell (cat/dog pee), smudges in walls, beat up cabinets with damaged hardware, jagged laminate countertops, stinky & dirty bathrooms. The whole combo!

you can do some damage with $15k if you do majority of the work yourself (expect to do all painting yourself, etc.). so to hit that 420k, what all do you need to rehab? once you know that, you can start piecing it together. 

 

@Alfonso Aramburo Zepeda

Depending on how you’re funding the purchase, you could aim to purchase a home that doesn’t need any major repairs only minor and then it would be easy to achieve with 10-15k.

But to answer your question:

1.) urgent repairs

2.) paint: walls/cabinets

3.) flooring

Goodluck on your search!

Originally posted by @Laura Cardenas :

@Alfonso Aramburo Zepeda

Depending on how you’re funding the purchase, you could aim to purchase a home that doesn’t need any major repairs only minor and then it would be easy to achieve with 10-15k.

But to answer your question:

1.) urgent repairs

2.) paint: walls/cabinets

3.) flooring

Goodluck on your search!

It is going to be a matter of find the right deal. 

 I know Is a tight budget. I'll post before/after picture once done.
Thank you

How is the curb appeal?  Being you plan on renting it out.  I can't tell you how many times I drove by a property and said to myself what a dump.  If you update the inside but the outside doesn't look nice people will pass on it.

My house looked like the munster house on the outside when I bought it.  Many people looked but many passed.  It took almost an entire week just to get rid of weeds, trim trees and shrubs.  Nothing was trimmed in over 5 years.  I get neighbors that compliment me all the time on the outside.  The inside needs work, but the outside at least got my neighbors talking.

A coat of paint really can make all the difference.  With your budget it might be pretty tight to get all those things done.  However I think you can really make it shine with new floors and either cabinets or just get them refaced.  Doing the work yourself will save you a lot of money.

Have you been to any open houses in the area to see what everyone else has done with the inside?

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