Flipping for Profit: The Ultimate ROI Renovation Secrets
Member since 2024 · 30 posts · 9 votes
Flipping for Profit: The Ultimate ROI Renovation Secrets
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Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes
2yHey Willis,
In my experience, kitchen renovations tend to bring the highest ROI in fix-and-flip projects. A modern, updated kitchen is a major selling point for buyers and can significantly increase the property's value. Focus on upgrading countertops, cabinets, and appliances. Even relatively modest investments in these areas can yield impressive returns. Plus, a well-designed kitchen can make a lasting first impression, helping the property stand out in a competitive market.
The bathroom remodel often comes in as the second-highest ROI renovation in fix-and-flip projects. Upgrading fixtures, adding modern tile, and improving lighting can make a big impact. Buyers appreciate a fresh, updated bathroom, and it's a relatively cost-effective way to add value to the property. A clean, well-designed bathroom can also enhance the overall appeal of the home, making it more attractive to potential buyers.
The curb appeal improvements typically rank third in terms of ROI for fix-and-flip projects. Enhancing the exterior with fresh paint, landscaping, new siding, or an upgraded front door can create a strong first impression. Since curb appeal is the first thing potential buyers notice, these relatively low-cost improvements can significantly boost a property's perceived value and attract more interest, leading to a quicker sale at a higher price.
The flooring upgrade often comes in fourth for ROI in fix-and-flip projects. Replacing old or worn-out flooring with modern, durable options like hardwood, laminate, or high-quality tile can make a big difference. Buyers tend to appreciate clean, cohesive flooring throughout the home, which can enhance the overall aesthetic and make the space feel more luxurious and well-maintained. This upgrade is especially impactful in high-traffic areas like living rooms and kitchens.
The open-concept layout renovation usually ranks fifth in terms of ROI. Removing non-load-bearing walls to create a more open and spacious floor plan can significantly enhance the appeal of a property. Open layouts are highly desirable because they improve the flow of the home and make it feel larger and more modern. This type of renovation can be relatively cost-effective, especially if it doesn't involve major structural changes, and it often resonates well with buyers looking for contemporary living spaces.
Best Regards,
39 Replies
- Member since 2024 · 30 posts · 9 votes2y
Quote from @Jackson Ebersole:
Quote from @Willis Yoder:
Quote from @Jackson Ebersole:
From our experience, when flipping properties the most efficient ways to spend your money are the following:
Focus on kitchens and bathrooms, as these areas consistently provide the most value for your investment. A midrange kitchen remodel has a 96% ROI, costing an average of $27,492 and adding $26,406 above your cost in value.
You could also go for slightly larger rehabs, such as adding a bathroom or a bedroom. For example, adding a bathroom can increase your home's value by 10-20%, depending on the quality and type of bathroom. A full bathroom addition can potentially boost value by up to 20%, while a half bath might add around 10.5%. The cost of adding a bathroom typically ranges from $25k to $60k for a full bath, or $6k to $12kfor a half bath. However, you can expect to recover about 50-55% of your investment when selling the home.
Improve curb appeal, clean up the exterior, add landscaping, and make minor improvements to enhance the property's first impression. Landscaping has the largest ROI (of about 200%), adding a wood deck or a patio will also provide a big increase in value (100% ROI).
Add living space, consider converting attic space, finishing a basement, or repurposing a large living area to add a bedroom without expanding the home's footprint - this will give you an average ROI of around 75%. If you're going for a larger rehab, adding an ADU or doing an enlargement also provides a good return, although it is smaller than what we've seen before, around 50% ROI.
We're a private lender. If you have any more questions or are looking for funding please feel free to reach out to us.Regards,
Jackson
Great insights—thanks for sharing those numbers! It's interesting how kitchens and bathrooms consistently top the list for ROI, and I can see why focusing on those areas makes a big difference. I'm also intrigued by the potential of adding living space through attic conversions or finishing basements—those tend to be great value-adds without having to expand the home's footprint.
I'm curious, though—do you find that the ROI varies significantly between markets or property types? I'm primarily working on fix and flips around South Bend and Elkhart, and I'm always looking to fine-tune where to best allocate funds. Would love to hear your thoughts on how these strategies might apply to properties in those areas!
Hi Willis,
ROI can definitely vary between markets, even within the same region. South Bend and Elkhart may have different buyer demographics, price points, and demand drivers.
The median list prices are under $160,000 in South Bend, targeting lower-priced properties allows for better profit margins. Look for homes priced below market that need mostly cosmetic updates.
Different property types (single-family homes, multi-family, condos) can yield varying ROIs. In South Bend and Elkhart, single-family homes seem to offer better ROI due to demand from both homeowners and investors.
Kitchen rehabs tend to provide the most ROI in all markets. In the Midwest, finishing basements or adding outdoor living spaces can be particularly valuable. Local buyers are seeking modern finishes like LVP flooring, granite countertops, and stainless appliances.
South Bend's economy is influenced by Notre Dame University, while Elkhart is known for RV manufacturing. Target renovations that appeal to the local workforce and lifestyle. In college towns like South Bend, features that appeal to potential landlords (like extra bedrooms or separate entrances) will boost ROI.
In colder climates like Indiana, spring and early summer are often the best selling seasons. Plan your renovation timeline to list properties during peak buying months - also take into consideration that snow and rain will affect your rehab.
Another way that you will want to take climate into account is that given the cold winters, energy-efficient improvements like insulation and modern HVAC systems can be attractive to buyers. These upgrades can help differentiate your property in the market.
Let me know if you want to connect! Regards,
Jackson
Thanks for the detailed breakdown, Jackson! You’ve really hit on some key points that resonate with my experiences in South Bend and Elkhart. It’s true that even within the same region, market dynamics can vary quite a bit. Targeting those lower-priced homes in South Bend for cosmetic updates has definitely been a strategy I’ve found effective.
Your point about tailoring renovations to local demand—like appealing to landlords in South Bend due to the student population or focusing on features that cater to the RV workforce in Elkhart—is spot on. I'm curious, have you noticed any particular renovations or features that have surprised you in terms of the ROI they deliver?
Would love to connect and maybe discuss strategies further.
I advise my clients to compare their property to the comps they are looking to chase for the ARV & start with the kitchen/bathrooms and then work their way through their budget to match or slightly top the comps in the neighborhood.
- Member since 2024 · 84 posts · 48 votes2y
Quote from @Willis Yoder:
Quote from @Jackson Ebersole:
Quote from @Willis Yoder:
Quote from @Jackson Ebersole:
From our experience, when flipping properties the most efficient ways to spend your money are the following:
Focus on kitchens and bathrooms, as these areas consistently provide the most value for your investment. A midrange kitchen remodel has a 96% ROI, costing an average of $27,492 and adding $26,406 above your cost in value.
You could also go for slightly larger rehabs, such as adding a bathroom or a bedroom. For example, adding a bathroom can increase your home's value by 10-20%, depending on the quality and type of bathroom. A full bathroom addition can potentially boost value by up to 20%, while a half bath might add around 10.5%. The cost of adding a bathroom typically ranges from $25k to $60k for a full bath, or $6k to $12kfor a half bath. However, you can expect to recover about 50-55% of your investment when selling the home.
Improve curb appeal, clean up the exterior, add landscaping, and make minor improvements to enhance the property's first impression. Landscaping has the largest ROI (of about 200%), adding a wood deck or a patio will also provide a big increase in value (100% ROI).
Add living space, consider converting attic space, finishing a basement, or repurposing a large living area to add a bedroom without expanding the home's footprint - this will give you an average ROI of around 75%. If you're going for a larger rehab, adding an ADU or doing an enlargement also provides a good return, although it is smaller than what we've seen before, around 50% ROI.
We're a private lender. If you have any more questions or are looking for funding please feel free to reach out to us.Regards,
Jackson
Great insights—thanks for sharing those numbers! It's interesting how kitchens and bathrooms consistently top the list for ROI, and I can see why focusing on those areas makes a big difference. I'm also intrigued by the potential of adding living space through attic conversions or finishing basements—those tend to be great value-adds without having to expand the home's footprint.
I'm curious, though—do you find that the ROI varies significantly between markets or property types? I'm primarily working on fix and flips around South Bend and Elkhart, and I'm always looking to fine-tune where to best allocate funds. Would love to hear your thoughts on how these strategies might apply to properties in those areas!
Hi Willis,
ROI can definitely vary between markets, even within the same region. South Bend and Elkhart may have different buyer demographics, price points, and demand drivers.
The median list prices are under $160,000 in South Bend, targeting lower-priced properties allows for better profit margins. Look for homes priced below market that need mostly cosmetic updates.
Different property types (single-family homes, multi-family, condos) can yield varying ROIs. In South Bend and Elkhart, single-family homes seem to offer better ROI due to demand from both homeowners and investors.
Kitchen rehabs tend to provide the most ROI in all markets. In the Midwest, finishing basements or adding outdoor living spaces can be particularly valuable. Local buyers are seeking modern finishes like LVP flooring, granite countertops, and stainless appliances.
South Bend's economy is influenced by Notre Dame University, while Elkhart is known for RV manufacturing. Target renovations that appeal to the local workforce and lifestyle. In college towns like South Bend, features that appeal to potential landlords (like extra bedrooms or separate entrances) will boost ROI.
In colder climates like Indiana, spring and early summer are often the best selling seasons. Plan your renovation timeline to list properties during peak buying months - also take into consideration that snow and rain will affect your rehab.
Another way that you will want to take climate into account is that given the cold winters, energy-efficient improvements like insulation and modern HVAC systems can be attractive to buyers. These upgrades can help differentiate your property in the market.
Let me know if you want to connect! Regards,
Jackson
Thanks for the detailed breakdown, Jackson! You’ve really hit on some key points that resonate with my experiences in South Bend and Elkhart. It’s true that even within the same region, market dynamics can vary quite a bit. Targeting those lower-priced homes in South Bend for cosmetic updates has definitely been a strategy I’ve found effective.
Your point about tailoring renovations to local demand—like appealing to landlords in South Bend due to the student population or focusing on features that cater to the RV workforce in Elkhart—is spot on. I'm curious, have you noticed any particular renovations or features that have surprised you in terms of the ROI they deliver?
Would love to connect and maybe discuss strategies further.
Hi Willis,
Something that I didn't mention before and that could be unexpected is adding a separate entrance or converting a basement/garage into an ADU can appeal to landlords looking to rent to multiple tenants. This can provide a surprising boost to ROI.
Would love to connect, please let me know if you need advise on the funding of your investments,
Jackson
- Member since 2024 · 30 posts · 9 votes2yThat’s a solid approach! Kitchens and bathrooms definitely set the tone for value. How do you determine which features or upgrades will give the best return in your market? I'm curious if there are specific trends you're seeing that influence your recommendations.
Quote from @Jana Crum:
I advise my clients to compare their property to the comps they are looking to chase for the ARV & start with the kitchen/bathrooms and then work their way through their budget to match or slightly top the comps in the neighborhood.
I take a look at the comps from the past 3 months and compare each property's finishes, livable sqft, condition of backyard, type of flooring, type of cabinets, etc. From this, I start to see trends appear showing what features buyers are willing to pay a premium for and go from there.
- Member since 2024 · 30 posts · 9 votes2y
Quote from @Jana Crum:
I take a look at the comps from the past 3 months and compare each property's finishes, livable sqft, condition of backyard, type of flooring, type of cabinets, etc. From this, I start to see trends appear showing what features buyers are willing to pay a premium for and go from there.
That's a great strategy! Analyzing comps that closely definitely helps in spotting those trends. Have you noticed any specific features or upgrades that consistently stand out as must-haves in your area?
- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 472 votes2y
Great question Willis!
One of the highest ROI renovations in fix-and-flip projects is kitchen remodeling. Buyers tend to focus on the kitchen, and updating it can drastically increase your home's appeal and value. But here's the key: it doesn't have to be a full, high-end renovation to make a big impact.
Tips to maximize ROI on a kitchen remodel:
- Focus on cosmetic upgrades: refinish or paint cabinets, add modern hardware, replace countertops with affordable yet attractive materials like quartz.
- Upgrade appliances to energy-efficient models if needed, but don’t over-splurge on luxury brands.
- Install new lighting fixtures and update backsplashes for a fresh, modern look.
Typically, a well-executed kitchen remodel offers a strong return on investment, usually 70-80%, sometimes more depending on the market.
If you're thinking about financing for your flip or want more specific ideas on where to spend wisely, I will be happy to help.
Regards,
Drago
- Member since 2024 · 30 posts · 9 votes2yDrago, that's spot-on advice. The kitchen really does hold a lot of sway with buyers, and those strategic, cost-effective upgrades can make a huge difference in a flip. I’m curious—when you're planning a remodel, how do you determine which specific upgrades will resonate most with buyers in a particular market? Have you found that certain styles or materials consistently perform better in your projects?
Quote from @Drago Stanimirovic:
Great question Willis!
One of the highest ROI renovations in fix-and-flip projects is kitchen remodeling. Buyers tend to focus on the kitchen, and updating it can drastically increase your home's appeal and value. But here's the key: it doesn't have to be a full, high-end renovation to make a big impact.
Tips to maximize ROI on a kitchen remodel:
- Focus on cosmetic upgrades: refinish or paint cabinets, add modern hardware, replace countertops with affordable yet attractive materials like quartz.
- Upgrade appliances to energy-efficient models if needed, but don’t over-splurge on luxury brands.
- Install new lighting fixtures and update backsplashes for a fresh, modern look.
Typically, a well-executed kitchen remodel offers a strong return on investment, usually 70-80%, sometimes more depending on the market.
If you're thinking about financing for your flip or want more specific ideas on where to spend wisely, I will be happy to help.
Regards,
Drago
- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 472 votes2y
Thanks Willis!
I think it would be beneficial to research the local market and buyer demographics. Here's what I would do:
Know Your Target Buyer: Is the neighborhood attracting first-time homebuyers, luxury buyers, or families? First-time buyers may appreciate modern, budget-friendly finishes, while higher-end buyers might expect premium materials like quartz countertops or custom cabinetry.
- Study Local Listings: Look at recently sold homes in the area, particularly those at the top of your price range. Pay attention to the kitchen styles and finishes they feature—this will give you a sense of what buyers are responding to.
- Focus on Timeless vs. Trendy: In most cases, a modern, clean look with neutral color schemes (like white or gray cabinetry) tends to have the broadest appeal. Sleek, stainless-steel appliances and durable, easy-to-maintain materials like quartz or granite are always safe bets. Trendy materials (like bold backsplashes) are best used sparingly.
- Cost-Effective Upgrades: A fresh coat of paint on cabinets, new hardware, or upgraded lighting can make a big difference without a huge investment. Open shelving is also an affordable way to add a trendy, airy feel without a complete overhaul.
- Energy Efficiency: In many cases, energy-efficient appliances can add significant value and appeal, especially with eco-conscious buyers.
In terms of consistent winners, I've found that shaker-style cabinets, subway tile backsplashes, and quartz countertops perform very well across different price points. These are materials that feel both modern and timeless, making them a great long-term investment.
If you ever need help financing your next flip or have more questions about remodeling for resale, feel free to reach out!
- Member since 2024 · 30 posts · 9 votes2y
Quote from @Drago Stanimirovic:
Thanks Willis!
I think it would be beneficial to research the local market and buyer demographics. Here's what I would do:
Know Your Target Buyer: Is the neighborhood attracting first-time homebuyers, luxury buyers, or families? First-time buyers may appreciate modern, budget-friendly finishes, while higher-end buyers might expect premium materials like quartz countertops or custom cabinetry.
- Study Local Listings: Look at recently sold homes in the area, particularly those at the top of your price range. Pay attention to the kitchen styles and finishes they feature—this will give you a sense of what buyers are responding to.
- Focus on Timeless vs. Trendy: In most cases, a modern, clean look with neutral color schemes (like white or gray cabinetry) tends to have the broadest appeal. Sleek, stainless-steel appliances and durable, easy-to-maintain materials like quartz or granite are always safe bets. Trendy materials (like bold backsplashes) are best used sparingly.
- Cost-Effective Upgrades: A fresh coat of paint on cabinets, new hardware, or upgraded lighting can make a big difference without a huge investment. Open shelving is also an affordable way to add a trendy, airy feel without a complete overhaul.
- Energy Efficiency: In many cases, energy-efficient appliances can add significant value and appeal, especially with eco-conscious buyers.
In terms of consistent winners, I've found that shaker-style cabinets, subway tile backsplashes, and quartz countertops perform very well across different price points. These are materials that feel both modern and timeless, making them a great long-term investment.
If you ever need help financing your next flip or have more questions about remodeling for resale, feel free to reach out!
Thanks for the detailed insights! I totally agree that understanding the local market and buyer demographics is crucial, especially when targeting specific types of buyers. Your points on balancing timeless features with a few trendy touches make a lot of sense.
In South Bend and Elkhart, I've noticed that first-time homebuyers are quite active, so modern yet budget-friendly finishes are often a hit. I’m curious, though, how do you determine the right balance between cost-effective upgrades and more significant investments like quartz countertops? Also, have you found any specific trends that are particularly popular in our local market recently?
I’d love to discuss more about this and maybe even collaborate on a project down the line!
- Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes2y
Kitchen and Master bath will sell the house
- 2yGary NelsonBusiness MemberReal Estate Agent · Branson, MO · Member since 2016 · 141 posts · 93 votes
Hey Willis! One renovation that I've found to bring great ROI is upgrading to luxury vinyl plank (LVP) flooring. It's cost-effective, durable, and gives a modern, clean look that buyers love. LVP is especially great for high-traffic areas like kitchens and living rooms, offering the look of hardwood without the maintenance or expense. Plus, it appeals to both investors and homeowners because of its practicality and aesthetic appeal. If you're looking for a simple yet impactful update, LVP flooring is a winner every time!
Gary Nelson Real Estate, EXP Realty, LLC554 Reviews - 2yGary NelsonBusiness MemberReal Estate Agent · Branson, MO · Member since 2016 · 141 posts · 93 votes
One renovation that I've found to bring great ROI is upgrading to luxury vinyl plank (LVP) flooring. It's cost-effective, durable, and gives a modern, clean look that buyers love. LVP is especially great for high-traffic areas like kitchens and living rooms, offering the look of hardwood without the maintenance or expense. Plus, it appeals to both investors and homeowners because of its practicality and aesthetic appeal. If you're looking for a simple yet impactful update, LVP flooring is a winner every time!
Gary Nelson Real Estate, EXP Realty, LLC554 Reviews - Member since 2016 · 17 posts · 1 vote2y
Hello everyone,
I've done 3 buy and hold rental properties, and now I want to do flips, I need investors and I have some that have shown interest, in addition to speaking to private lenders that are willing to fund 70% of the LTV (based on the desired property)
I'm seeing a lot of deals from wholesalers, but the problem is, some of them close in 2 weeks and some as long as a month, and they don't take conditional offers, and the good ones fly off the shelf really quick.
My question is, how does someone like me close one of those deals within this short period, how do you arrange the equity and financing with little to no inspections sometimes even.
I'd like to know how do I prepare myself to be able to close one of these good deals right away when they are offered to me and many others?Thank you in advance!
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