Renovating homes for resale is no longer a playground for just the boys. The numbers of women looking for opportunities to invest in renovation and resale is growing rapidly. How do you enter into this income investment field, and how do you pull the most out of your investment?
The first step – buy!
Research, research, research. Spend time looking at the market in your area, and try to spot trends in gentrification. Balance what you want versus what the market is looking for. Seek out a well respected realtor who knows the area well and will ethically guide you.
Choosing a direction
The papers are signed and you are now the proud owner of a fixer upper in need of some serious fixer upping. If you haven’t been down this road before, you are going to be overwhelmed by how many different directions you can go at once. Should you hire a contractor or self contract? Should you start with the kitchen, the living room, bathrooms, or the exterior. Where is your money best spent and in what order should you setting your priorities?
Know the priorities for your region
When you purchased your investment property, you or your realtor spent time considering the local market and what will resell. With your papers in hand, before the hammers start swinging, it’s worth touring a few homes that are on the market to get a feel for what the market priorities are. Pay attention to where the money was well spent, what was consistent in each of the properties, and what features really get your attention. Also, take some time to look into the industry and employment opportunities in the area. Will you be housing mostly commuters or will you have an opportunity to woo the home office crowd? If you will be living in the home as it gains equity, what will make this a house you enjoy coming home to?
The kitchen is always a win
If your basic bones of your house are good, nothing grabs the buyer’s attention like a quality kitchen. Granite, tile, stainless steel, and warm inviting wood surfaces welcome your buyer into thinking of your house as their home, but the costs can be significant.
Should you go all in or are there places to cut corners? Can your cabinets be re-faced or should they be replaced altogether? Do you go with granite or can you use a laminate product? Can you refurbish your tile or do you need to completely change your wall coverings? If you have the budget, investing in your kitchen will pay more emotional dividends back than anywhere else in your house.
More bang for your buck
Baths, master suites, and open floor plans follow closely behind in providing return for your investment. Each offer a nice return for investment, and give your buyer a concrete feeling of home. They imagine themselves living in these spaces and have visions of their families occupying these spaces.
First impressions are lasting impressions
Surprisingly though, many experts recommend that investing in these projects will provide a higher return than the living spaces. If the buyer is affected negatively before you even get them in door, your odds of selling your house will obviously decrease dramatically.
There are significant opportunities for women to invest in real estate renovation, if you choose your directions wisely you can pull the most out of your investments.