When you decide to flip a house, whether to rent or to sell, you are relying on increasing your cash flow to profit. However, while your to-do list might be pages long, it is important to double-check the contents of your renovation plans before moving forward. Time and time again do real estate investments lose a significant chunk of their return because of renovation mistakes.
Whether your plans include a few pointless rehabs that won’t earn back what their worth, or you are in need of a heads-up regarding the thoroughness of your planning, this guide will hopefully give you a helpful start to avoid renovation mistakes.
Common property rehab mistakes house flippers make.
1) Properly plan for everything, even the unexpected.
You can attempt to cover all the bases and map out the expectations for your property rehab, but the truth is, renovation of an investment property is a massive undertaking. Anything can happen. It’s imperative to plan adequately and prepare for everything, and this includes expecting the unexpected. When you leave room for chaos, you will be able to problem solve much better and deal with situations as they arise. Needless to say, leaving wiggle room in your schedule, as well as your budget, will bode well for you, and not to mention your stress levels.
2) Don’t cut corners when it comes to prep work.
This goes along with proper planning: if you do it the right way, right away, you can save yourself time and trouble in the future. Finding affordable, accessible ways to order needed materials, having your contractors and other work lined up, and acquiring the required permits are just a few examples of things you need to have completed before you begin your renovation.
3) Buying cheap materials won’t save you time or money.
To increase your ROI, it’s key to conduct your rehab within budget, but that doesn’t mean you should penny pinch and buy cheap materials. Remember, you are going to get what you pay for, and those materials are cheaply priced for a reason.
4) Inconsistent or inaccurate measurements.
It might not seem or sound like it, but even an inch of an inaccurate measurement can make a world of difference. Symmetry and accurate dimensions are crucial not only for structural integrity but to achieve the desired effect. Follow directions, or ask for help if you are unsure. “Measure twice, cut once” is a saying for a reason.
5) Being too trendy.
Trends, unfortunately, almost always have an expiration date. It’s common for house flippers to make the mistake of making the decor or features of their property equipped with the latest trends. Instead, go with something that will withstand the test of time and something that won’t immediately assign a date to the remodel of the home.
6) Going too small.
Completing bathrooms, hallways, or doorways that are too small is a big mistake. When you begin the rehab of your property, be sure and look at the entire floor plan and see everything as a big picture. Ensure that every room has multiple exits or are wide enough to allow passage through high-traffic areas. Likewise, be sure that, if your bathroom is smaller in size, the furnishings and fixtures are size-appropriate. Don’t try to cram full-sized sinks, vanities or toilets into a bathroom that is too small, lest your guests feel claustrophobic.
7) Using the wrong type of paint.
Believe it or not, there are specific types of paint for different areas of your house, and there is a paint for nearly every type of surface. Be sure and pick the correct paint for the area or project you are working on. If you are painting ceilings or walls, use flat paint. Semigloss paint is appropriate for trim, accents, dining rooms, and bathrooms, while glossy should be used in moderation for an upscale touch.
For more renovation tips and tricks…
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In the meantime, put this advice to work and get started on your next property rehab! New Western provides investors with exclusive access to off-market properties that aren’t available to the public. These investment properties are deeply discounted, and can sometimes be more than 50% lower than the market price.
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