CHAPTER 7 Home Renovation ROI
When it comes to creating a successful flip, it’s critical to know where and how to spend your money. Smart renovating will increase your profit, whereas spending unwisely will cut the amount you can make or, worse, put you in the red. And remember, no one wants to lose money!! This chapter includes the right and wrong uses of your renovation time and budget. First, we’re going to take a quick look at several of the best places to spend your money for the greatest return, like the kitchen and bathroom. We’ll also dive into details of where and how much you can expect to recoup when you decide to place your flipped property back on the market for sale.
WHERE TO SPEND
Basic Working Order
First, don’t overlook the basic systems. When people are looking at a home, they don’t expect to find leaky pipes, a non-working furnace, or electrical outlets that pop a breaker as soon as something is plugged into an outlet. Shoot, they don't even want to see older outlets/outlet covers that vary in color throughout the home...you know...the outlet cream colored with a white cover plate over it...we've all seen this before! Yuck! These and other issues, like mold, a leaky roof, problem gutters, or stained and damaged carpets, will generally turn off a buyer, regardless of how amazing the kitchen and bathrooms might be. Some of these, especially the less-visible issues like an aging 57
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