Home renovation offers the opportunity to improve your home and upgrade its features — but more importantly, it allows you to invest in its value and potentially boost its equity. If you’re considering property refurbishment, you should opt for updates that will add to your home’s value. This is especially true if you’re renovating property for a living. There are many different types of renovations, and choosing the right remodel strategy can significantly impact a home’s resale value.
Types of Home Renovation: Which Ones Boost Value?
When you think about the types of renovation you’re considering, you might immediately be drawn to the updates that have a dramatic aesthetic effect. Visual impact is a major factor to consider, but you should also consider how the following renovations add value to flipping a house.
Major Remodel of the Bathroom
The bathroom is a surprisingly important feature to many prospective home buyers. If it’s too small, poorly coordinated, or lack sufficient storage, buyers can be turned off from the entire property. This is why a major bathroom renovation is one of the best bets for boosting the overall value of a home. Update the bathroom fixtures and install some trendy tile if you want to see a great return on your investment.
Adding a Porch, Patio, or Deck
Who doesn’t love the idea of lounging on a back patio or enjoying a summer day on the front porch? Adding a porch, patio, or deck can have a major impact on a home’s resale value and offer a fantastic return on investment. Buyers are always looking for a home that’s ideal for entertaining guests, and this is one of the best types of renovation you can invest in for an increased appeal to buyers.
Remodeling the Home Exterior
You might hope that buyers won’t judge a book by its cover — or home by its curb appeal — but they inevitably do. It’ll be hard to get prospective buyers through the door to see your property refurbishment if the exterior of your home is still unsavory. Do yourself and your home a favor by updating the front entry, investing in new siding, or painting the exterior of the home. This can offer the exterior allure that buyers are looking for — as well as a great boost to the home’s value.
Research the Market and Know Your Assets
The real key to an effective home renovation is knowledge. No matter how much time, effort, and money you pour into updates, it may not offer any return if you lack awareness of your market. Don’t forget to include research in your renovation plans. Familiarize yourself with the community your home is in, learn about the demographics of the town, and develop an understanding of what prospective buyers are looking for. Do you live in an area where retirees may be sold on a walk-in bathtub? Are young families looking for a starter home with great nursery space? These are the kinds of questions you need to know the answers to so that you can identify the assets of your home and renovate the areas that can be improved.
How to Finance a Flip Property
Many home flippers don’t have the cash on hand to fully fund a renovation. Luckily, there are solutions available. Capital Fund 1 works with investors like you to offer the hard money funding that’s necessary to flip properties. We can help you improve your profit margins and property outcomes.
The Difference Between Investors and Owners
As an aspiring house flipper, you might be enticed to join efforts with another investor who offers to provide financing. They might offer this with the condition that they are also an owner of the property. Though this can seem like a great deal, it often means that they will take a share of profits — which can be much greater than the cost of outside funding. An investor is different than an owner. An investor offers the hard money you need so that you can achieve the home renovation you envision. Rather than share directly from profits, you can repay the loan.
Is Flipping Houses Right for You? Talk to an Asset-based Lending Expert at Capital Fund 1
Flipping houses might sound like a great way to make money — and it is, but it’s also an incredibly difficult endeavor. Finding the right funding can make it easier. Capital Fund 1 offers an array of financing options for investors seeking to renovate and flip houses. For more information, call us at (480) 889-6100 or reach out to us online.
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