Ready to Flip? Improve Your Investment Property With These ROI-Friendly Tips 469954-1

As an investor, you want to maximize your return on investment (ROI). But what are the best ways to improve the look and value of your property without breaking the bank? Wealth Planning by Bob Chitrathorn has compiled a list of tips and tricks that will help make this transition easier.

Research Your Local Real Estate

Do your research before diving into updates. While there are some best practice renovations, every neighborhood is different. Start by looking at the average sale price in your area. Then, look at recent home listings to see what features the higher priced homes include. Those are likely the updates you should pursue.

Reuse Empty Rooms

Do you have an unused room in the home, such as a large closet or den? Consider using space for extra storage, a study area, or an office. This can be done inexpensively by adding shelves, built-in desks, and additional lighting. Repurposing rooms will add value to the home and give it a much more spacious feel than before.

Draw some inspiration from looking at fun, themed decor styles. Many of these options, like mid-century modern, are very popular. While you don’t want to stylize a space too much if you plan to sell, you can find ideas that can make the space attractive to potential buyers.

Frequent Deep Cleaning

Nothing makes a house look more run down than dirt and grime. Deep cleaning of the property regularly is essential if you want potential buyers to be comfortable visiting the home. Make sure carpets are vacuumed often, windows are washed and surfaces are wiped down. Not only will this make your property look better but it will also help keep it healthy too.

Enhance Staircases

Staircases can be an afterthought when redecorating but they shouldn’t be. Give staircases some love by painting walls, replacing carpeting, or installing new railings for safety reasons. This will help create an attractive aesthetic that potential buyers won’t soon forget.

Strengthen Roof and Foundation Structures

It is crucial to have a strong foundation and roof structure for any building, as they provide structural integrity and protection from the elements. Before beginning the selling process, inspecting these areas is essential to identify any potential issues and repair them. By taking care of repairs now, you can prevent larger problems from arising during the sale process, which could save thousands of dollars later on.

Eco-Friendly HVAC Systems

Old air conditioning and heating systems may consume more energy than newer models, leading to higher energy bills. To reduce energy costs and increase the value of the property, homeowners can consider investing in eco-friendly options such as geothermal heating systems or solar power. However, it is crucial to ensure that all paperwork related to the installation is taken care of to avoid any potential legal consequences when the sale process begins.

Get New Carpet or Flooring

As flooring is one of the most important aspects of a property, outdated carpets or old flooring can leave a dingy impression on potential buyers during in-person visits or online viewings. Replacing carpets with tile or hardwood floors can give the property a much-needed facelift and increase the chances of getting a higher offer from interested buyers. Adding accent rugs around the house is also an affordable way to give interior spaces a perfect touch without breaking the bank.

Refresh Your Window Treatments

Upgrading window treatments is an important consideration when seeking to maximize the return on investment in real estate. Old-fashioned curtains may detract from the value of a property, while modern blinds, shades, and shutters can increase it. By choosing one of these options, you can benefit from customizable light filtering and privacy features that enhance both the functionality and aesthetics of a space.

Benefits of Forming an LLC

If you own investment real estate, it’s crucial to consider forming a limited liability company (LLC) to protect yourself from any possible liabilities associated with the ownership. This legal entity shields the owner from personal liability and protects their personal assets in case of any legal action against the company.

Moreover, LLC formation is a low-cost option, making it highly desirable among real estate investors as it provides maximum security measures at an affordable cost. To get started, find the forms online or work with a formation service to submit your state-specific paperwork on your behalf.

Update Strategically

To improve an investment property, it’s important to do your research and find options that fit your budget, style preferences, and timeline needs. Repurposing unused rooms, updating old HVAC systems with eco-friendly options, and forming an LLC can all improve returns on investment. Remember to find a balance between short-term goals for better returns and long-term success.

Use your property investments strategically for your long term financial goals. Contact Wealth Planning by Bob Chitrathorn to discuss your strategy and begin developing your wealth management.