Real estate is a great investment, especially when you take the time to make the necessary improvements that will either attract renters or help it sell. Whether you wish to rent or flip it, renovations are often needed, or at the very least advised. As Dean Graziosi points out, investment properties can be quite lucrative if you keep up with them along the way. According to an article in Forbes, sellers should think long-term when it comes to making changes.
A well-maintained investment property can keep renters in it for a very long time. Each time a tenant moves out, take a look at every aspect of the home to see what needs to be replaced or even completely remodeled. Sometimes just updating appliances and color schemes whether they really need it or not can make a huge difference. A property that is in great shape will attract renters who will continue paying money to live in your home. Failing to update your property can mean huge problems for you in the long run.
When fixtures and appliances get old, they stop working properly. Letting the plumbing and electric go without maintenance results in leaks and a high risk of fire or other problems. Upon buying a home, an inspection should have been performed, but it never hurts to go over all aspects again.
Begin by replacing warn fixtures. If the home is older, it may be time to install siding or new windows. This will help it remain more energy efficient which will save both you and your tenants more money in the long run.
If you are planning to sell it, making renovations will raise its value. Adding more modern fixtures or replacing flooring will make it look brand new even if it is an older home.
As Dean Graziosi explains, “There are certain home improvements that will be best for your investment property.” When it comes to making renovations, you need to think about profit.
You should begin by assessing both the exterior and interior of your property. Look at not only the home itself, but the rest of the land it sits on and any other outbuildings that may reside there. This includes, of course, the garage. What needs replacing? You’ll want to take care of the actual needs before making other improvements that only serve to raise the value.
If you are able to do the work yourself, you’ll save a lot of money. Hiring contractors can get expensive very quickly, but it important if you need them. Doing the work all by yourself will take longer but will be worth it in the long run, and is okay if you have the time. If you need to flip the investment property quickly, you’ll definitely want to have help.
Look at the inside of the home. What do the individual rooms need? Make a list of all the renovations that will be necessary and assess the cost of materials. This will help you figure out what the overall cost will be.
For more information and tips, visit Dean Graziosi’s site. Be sure to check out his posts on other relevant real estate topics as well.