Top 5 “Bang For Your Buck” Home Upgrades???

Question

Flipping my first property and have limited funds to invest. What are your top 5 “Bang for your buck” upgrades that will sell the house for top dollar? Please be specific!

Bruce Woodruff · Answer

Having done remodels for decades, I can tell you without doubt, that your #1 ROI is the kitchen. #2 is the Master Bath. #3 Master Bedroom. #4 Open Floor Plan. #5 Other baths.

Of course certain families will have their own wish list, but these will be your money makers.

Leo R. · Answer

@Michael Yi adding an additional bathroom and/or adding an additional bedroom can provide excellent returns. However, the caveat is: it has to be a relatively easy operation. The existing walls and the routing of plumbing electric & HVAC ducts all need to be conducive to the plans. If the existing layout is not conducive to the plans (for instance, if you have to remove a load-bearing wall and engineer new structural support, or if it's not possible to add a br or ba without messing up the flow and functionality of the house), then it might not be feasible and could end up costing far more than it produces...

Also, if this is your first property, I'd suggest against a flip. Any strategy that requires you to hit an ARV is exceptionally risky at the moment, given the state of the market (even highly experienced pros are staying away from ARV-dependent strategies right now). If you do proceed with an ARV-dependent strategy, it's advisable to be very conservative with your financial models, and to have multiple alternative exit strategies in case you don't hit your ARV.

Good luck out there!

Kenneth Garrett · Answer

@Michael Yi

In general kitchens and bathrooms get the best return.  I like to buy 2 bedroom houses that have enough square footage to add a third bedroom or additional bath.  Adding a bedroom is relatively basic, provided you are not messing with any structural walls.  This market is tough, but investors are still flipping.  Be careful of using an aggressive ARV.  Depending on your market, prices are still coming done, whereby at the time you finish, your ARV might be $5000-$10,000 less than what you projected.  It’s all market driven.  When we have an unstable housing economy you need to be very conservative on your numbers.

Bob S. · Answer

Roof, windows, baths kitchen, HVAC,

Chris Seveney · Answer

@Michael Yi

Define “limited funds”. The list above is the top five but many bang for your buck renovations are $10-$50k each

Nathan A. · Answer

Get the advice of an agent in your area but in addition to what's been said: paint job, flooring, exterior appearance (new siding/paint/power-wash/whatever) and landscaping. There are lots of lists out there like this one that might be worth scanning too.

Top 5 “Bang For Your Buck” Home Upgrades???

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