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I understand swimming pools are usually not a big payoff improvement, however a colleague I greatly respect speaks mountains of them. Is this something I should put some of my seed capital toward on my current flip? The site is right for a swimming pool in the back yard. What are some things to consider when trying to maximize return from an in ground pool?
You might sell it quicker, or you might lose buyers because they don’t want a pool, but you will Never get back what it cost.
@Account Closed , there are some status-symbol suburbs (think Beverly Hills CA), where it's expected that a pool is standard, and then it just becomes a competition between buyers as to whether a rooftop pool, or indoor heated pool, or cliffhanger pool makes the bigger status statement. So, for your $2M+ purchase that you want to flip for $3M+, sure, you must get that pool in!
Not that the buyers will hardly ever use it. But, they'll flaunt it in front of their guests!
For every other suburb however - forget it! @Wayne Brooks' Rule rules in those suburbs...
@Wayne Brooks simple advice, seems like a pretty bad gamble given the bottom line! Thanks!
I’m not sure in a flip it makes sense unless it is in a neighborhood where every other house had one. In warm climates away from the ocean I’ve done great with pools for buy and hold. My experience is you has 3-4 times as many renter inquiries in my pool houses. You will get 20% more rent with a pool and I have economical pool help that gives me a better cash flow. Of course somebody else put the pool in and took the hit on the lack of payback. I look for pools in my purchases if I get them at a big discount.
I agree with @Joel Brown , unless the neighbourhood is dominated by pools, it doesn't make sense to build one. Good thoughts on renting the unit, you make good points.
I am going to build a community swimming pool for my mobile home park development. Seems like something that the community could use, and I hope that it will raise outer community opinions of the park as a whole.
@John Krasner I think that would make your mobile home park way more attractive to renters. Some parks wont need one because they maybe the only option anyways, but the cost of a pool divided by 100-150 lots makes it cheap and even getting an extra $25-50/month would pay for it less than 2 years.
Parth Patel Yay! Let’s be over general! So I’ll say they’re not worth it in 90% of the cases that are out there. As many people hate them as love them. Not to mention many states make you add fencing around them which is safe but really looks kind of ugly. Now if you’re in Gulf Shores, AL and have a lagoon-side property then a pool would definitely pay off but increased desirability for vacation renters. And I’m sure there are a bunch of market-specific examples like that. But, on the whole, I’d say the juice ain’t worth the squeeze.
@John Krasner that does sound like a way to make your park more family friendly and reduce the cost of the swimming pool overall. It even becomes a source of income in 2 or 3 years if you are able to include a small yearly fee per lot in the community covenant. Cool!
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