What projects within a rehab produce the best ROI?

What projects within a rehab produce the best ROI?

Real Estate Broker · Walnut Creek, CA · Member since 2014 · 105 posts · 58 votes

Hey BP,

Curious if anyone out there can chime in on what specific projects within a rehab produce the best ROI. Obviously this assumes that there aren't major infrastructure items to be addressed (ie. functioning roof, furnace, hvac, electrical, plumbing etc), but the projects that come to mine for me are painting the interior, granite counters, flooring, and prefab bathroom vanities.

Anyone have their list or case studies that they care to share?

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  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    11y

    @William Yeh I think your question is too broad for a good answer. The quick answer is kitchens and bathrooms, but you knew that. If you can be more specific about the neighborhood, condition of the house and your rehab goals I am sure you will get helpful feedback. 

  • Real Estate Investor · Rossville, GA · Member since 2014 · 218 posts · 96 votes
    11y

    @William Yeh IMO paint is the cheapest thing you can do to really improve the value but kitchens and bathrooms are the improvements that sell a home.

  • Real Estate Broker · Walnut Creek, CA · Member since 2014 · 105 posts · 58 votes
    11y

    To be more specific, I have an early 90s home in Northern California with standard builder grade materials throughout for that era (solid oak cabinets, linoleum floors, gold accent hardware in bathrooms, tile counters, etc.) My thoughts on best bang for the buck on the interior are paint (standard light khaki color), granite counters in kitchen/bathrooms, tile floors in kitchen/bathrooms, new hardware in kitchens/bathrooms, new doorknobs throughout.

    The home is 3000+ sq ft so I'm debating on whether it's worth it to upgrade the windows and do some of the larger cap ex items which are nice to haves but are perhaps afterthoughts in terms of selling the home. Any feedback on the items I've listed?

  • Real Estate Investor · Forest Grove, OR · Member since 2012 · 105 posts · 37 votes
    11y

    You have listed a good start, but the best way to know what to do is to look at the competition in the area, what its listed for (and selling for) and compare the types of finishes and features to what you'll be trying to sell. But you definitely seem to be on the right path of "de-aging" the home (IE removing gold accent hardware :) ). 

    We could say "yeah, do the windows",but without knowing if that's an expectation in your market we may or may not be shooting you straight. 

    As you know, and people have mentioned, paint, kitchens, and bathrooms are statistically going to provide your biggest ROI. But, you also need to factor in what is going to sell your home, and sell it quickly for the price you want.

    In terms of specifics, some photos of the home interior may help in getting additional input. 

    Cheers William!

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