Successful house flipping requires finding a careful balance between the amount of money you can afford to spend on purchasing and renovating a property, and knowing how much you can expect to recoup from the sale. It’s no good trying to flip a house that requires a greater investment than you can ever hope to recoup! Whether you ultimately intend to sell the property for cash or as part of a 1031 exchange identifying the most important areas for renovation in any property is an essential first step of the process.
The Kitchen and Bathroom
These are without a doubt the most important rooms to consider and should be your first port of call when viewing any property. Renovating these rooms is likely to be your biggest expenditure and it is crucial to get them right because they will also be the most expensive rooms to renovate for any potential tenants. Should your choices not be to their tastes, it could easily be the difference between them purchasing and not purchasing the property. This is also something to consider when making your renovations; while a more mundane or obvious choice of style might seem boring to you it is more likely to have broad appeal and, correspondingly, something eclectic and unique is more likely to be divisive in terms of appeal.
The Entrance Hall
First impressions are important and the immediate impressions any potential buyers have of your property will be lasting ones. A bright color scheme will exude a welcoming vibe that will immediately have any potential buyers thinking ahead to when they invite their own guests in to the property. Conversely, you do not want a dark and drab corridor to be the first thing anyone viewing the property sees first. In addition to bright colors, consider hanging some artwork up. But in this respect, safe and boring is better than exciting and divisive; you’re trying to sell the place not start a conversation. Also, never underestimate the power of suggestion; a welcome mat that actually says ‘welcome’ is always a nice touch.
The Dining Room
Larger properties are likely to include a dedicated dining area just off the kitchen, smaller properties may forego this, but either way you’re going to want to have space set aside for a table and chairs where food can be served. The style of the dining room should complement the kitchen so that eating in your property becomes an experience rather than a chore.
Even if it’s just for sleeping, we spend a lot of time in our bedrooms and they are where we begin and end each day. For these reasons, these rooms are likely to be personalized and altered by future tenants, and you should consider this when renovating. You’ll get no complaints for adding some tasteful furniture, but don’t go overboard. Some renovators deliberately leave these rooms with nothing but a white undercoat on the walls so that they can be easily painted and decorated when the property is sold.
Renovating a property can and should be fun, even if you aren’t designing it to your own personal tastes. However, always beware the dangers of over-renovating.