So, you’ve made the perfect purchase when it comes to your next investment property. Now, you have a blank slate to begin your renovation, and may have a few extravagant plans in mind for your remodel. But before you pick up that hammer, let’s take a step back. Some upgrades, while they seem like good ideas at the time, can be completely pointless when it comes to increasing the return on your investment.
1) Let the garage serve its purpose!
Often, when it comes to renovating an investment property, one of the first upgrades made is to the garage. The space is quickly converted to play rooms for kids, home theaters, or game rooms, and, while these ideas seem appealing, not all home buyers are fans of such an upgrade. Ideally, the garage is supposed to protect your expensive cars from snow and rain; it’s a place to store your dirty lawn mowers and garbage cans; it’s where you paint, refinish, or construct your DIY projects. If you subtract this necessary garage space from the equation, you might be disappointed in the feigned enthusiasm from home buyers.
2) Don’t lay down carpet when there’s beautiful flooring underneath.
When it comes to one of the most attractive features of remodeled homes, original, natural hardwood flooring tops the list. When you renovate an investment home, do yourself a favor and avoid carpeting over hardwood areas. Homeowners love hardwood for many reasons: it’s easier to clean, for one, and it is stunningly beautiful. If you cover up the hardwood, not only will add unnecessary expense that you’ll regret later, adding carpet could disintegrate a major selling point for home buyers.
3) Don’t go overboard with lighting.
Nothing can scare away a potential homebuyer like a dark, dank living space, but this doesn’t mean you should spend big bucks on fancy lighting. Lots of house flippers renovate their investment homes to include an oversized, crystal light fixture in the dining area. However, most don’t tend to get their money back. Keep in mind home buyers could have other plans for that dining room, such as another bedroom, and the effort you went through to get that expensive chandelier will just be a waste. Instead, throw in some can or recessed lighting to brighten the place up, while under-cabinet lighting in kitchen areas is an attractive addition to many modern homes.
4) Be careful when you choose your colors.
One of the simplest and most cost-effective improvements is just adding a fresh coat of paint to make a room look clean and updated. However, keep in mind that neutrals appeal to the greatest number of people. Even though your favorite color might be bright, neon-pink, that doesn’t mean you should subject potential homebuyers to an eye-sore of an accent wall. On average, a gallon of paint costs around $25, but if you go with a palette that is too dramatic, this could end up costing you much, much more.
5) Not everybody wants a pool.
During the summertime, we all love visiting a pool. However, as many homeowners are finding out: if you are the owner of that pool, the upkeep far outweighs the benefit. Many potential homebuyers immediately disregard buying a house with a pool simply because they don’t want to deal with the maintenance or the liability of an accidental drowning. Also, keep in mind that depending on where your property is located, many states do not have appropriate temperate zones for swimming seasons. That sparkling swimming hole that you’ve added to your investment might remain covered up most of the year, and is, therefore, possibly not worth the effort.
Pointless or no, you need a great property before you can begin any upgrades.
Whether your choice of renovations is excellent or sub-par, you can’t begin your investment journey without first finding the right property. If you’re ready to get your renovation underway, and see what kind of return your upgrades will earn, let New Western get you started with the best deals on investment homes.
New Western Acquisitions’ will work to build up your real estate investment portfolio, and provide you with the best advice, resources, and deals available. Wary of the state of the economy? Don’t be. Work with New Western Acquisitions and this year could be your year.