Maximizing rehab investments
Hello BP Community:
Looking for advice on rehab returns and worthwhile fixes that generally make a property more attractive to renters and buyers
My boyfriend and I are looking to purchase our first property (SFH or duplex) in Rochester MN using the FHA 203k loans. We're focusing on cheaper homes and foreclosures hoping to fix them up to the point that we'll maximize what we charge for rent after we live there for a year and eventually maximize what we can sell it for.
Once the property is livable and decently nice with updated appliances, etc, how much further should we go as far as updates? I realize this question is tough and very broad because it depends on the property, area, comps, cost and our target renter/seller but if anyone wants to throw out any advice or opinions on this, I'd really appreciate it.
For example, if the linoleum floor is outdated but not in pieces, would it be worth the investment to replace? Is it worth the money to replace the outdated light fixtures in the bathroom and kitchen? What's your experience? Personally, when I was a renter in the past, I looked for "clean" and "up to date" spaces but is it typically worth the money as an investor? Any tricks to make a property more appealing?
Thank you.
Marie