When evaluating any investment property that requires work to realize it’s full market value, consider these proven cost-effective investment property projects. They’ll return the most on every dollar spent.
According to Remodeling Magazine’s 2011-2012 Cost vs. Value Report, here are the top ten projects that will yield you the most bang for your buck in your property investment. These are mainly basic projects, most of which are exterior-related. But all have the highest return on investment, relative to all renovation projects.
1 – Exterior siding replacement with high-end fiber cement. This type of siding is one of the most cost-effective measures you can do for your property.
3 – Adding an attic bedroom. An attic remodel is the least expensive way of adding space and/or a bathroom inside the four walls of an existing house. (A basement remodel would be the next most cost-effective way to add living space.) In both scenarios, make sure you check with your local building department for feasibility.
4 – A minor kitchen remodel job. This may involve simply adding new laminate countertops, new sink, faucets and appliances. Cabinets are usually resurfaced, not necessarily ripped out and replaced. And the floor remains untouched.
5 – A mid-range garage door replacement. New garage doors really add to the overall first impression when prospective tenants drive up for the first time.
6 – Next best is a high-end garage door replacement, for the same reason as above.
8 – Foam-backed vinyl siding replacement improves the look of the house, and saves in heating costs, allowing you to attract more potential tenants, especially if they are paying for their own heat.
9 – Adding mid-range vinyl siding replacement. While not as expensive as foam-backed, and yielding less in terms of heat savings, the overall exterior look is improved greatly.
10 – Replacing old windows with new vinyl replacement windows that have low-emissive glass and high insulation values.
The bottom line for property investors…
Remember to spend your renovation dollars on the most desirable features for tenants, as well as those items that are standard maintenance items. Whenever you improve the look and feel of the exterior of your investment property, you’re naturally going to attract better qualified, and increasingly more potential tenants.
photos courtesy of brokersbestmtg.com, lifestylingsells.com, housebeautiful.com, eliteconstructionva.com, massrealestatelawblog.com