Has anyone done any flips where they have put a pool into the property? I am looking for feedback from anyone in the Phoenix Area. I'm trying to determine if the 20K will actually create more value than that when selling the property. My instinct says yes, but I have not seen any flips where the investor has done this. Anyone had any experience?
A year ago people were doing that out in San Tan valley. Not sure what is happening out there right now though.
I have studied appraisals on houses that I have sold with existing pools. In my area a pool will add about $8,000 to the appraisal. Since I can't have one built for less than about $25,000 it isn't a good investment. Or in your case it would cost you $20k to get $8k more on the appraisal, if it works out the same, meaning a net loss of $12k.
On the other hand, if I buy a house that already has a green pool I have always come out ahead. I feel like sometimes you can get a house with a neglected pool for cheaper than one without a pool. I have gotten them up and going again for anywhere between $500 and $4,000 and gotten an extra $8,000 on my appraisal.
Good call on looking for a home with a beat up pool, that would save a ton vs building one. I do however, think that even though the appraisals don't support the additional value of putting a pool in, I think that a home with a pool (at least in AZ) has a much larger buyer pool and will bring the additional 20K in price, just not sure if it will bring more than that. Thanks for the info though.
A pool will only add about 10-12k to your sell price, when comping properties throughout the valley if it is not a higher end pool with water features this is going to be your basic return. I would advise you not put in a pool unless you are in a highly desirable area where buyers will expect it. @Mark Freeman is absolutely right find a pool that is in terrible shape and you will be able to get a great a return.
"Enjoying the Journey"
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing