CHAPTER 9 Home Renovation ROI
When it comes to successful flipping, it’s critical to know where 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. 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, especially 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 on the market.
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. 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 furnace or water heater, are of critical importance. A buyer might not notice such issues on an initial walkthrough. But even if an offer is made and accepted, that’s not necessarily 60
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