Best Bang for Your Buck?

Question

I normally reply to posts but making a post :)

Best bang for your buck I typically see when working with clients is exterior paint/siding and landscaping. Landscaping ranges cheap, DIY to expensive. Exterior paint/siding can range in price but doing exterior work transforms the look of the house before buyers/renters step inside. Anytime I am working with a seller and the exterior pops the property always sells quickly then if they did not do much or anything to it. It sets the stage for buyers to be excited and feel welcomed. Same thing for a rental. Renters want to be excited when walking a unit to potentially. Now you want to first look at cost/comps. Don't overdue it but definitely do something small or big before putting it up for sale or rent.

What do you do to help make your properties pop when rehabbing?

Jackson Ebersole · Answer

Hi Caleb,

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, which is what you mentioned before, 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 in Kansas City. If you have any more questions or are looking for funding please feel free to reach out to us.3

Regards,

Jackson

Caleb Brown · Answer

Great info. Will shoot you a connection request