Using the stripped down approach
Taking a page out of the book on home remodeling ideas, property investors should utilize a more stripped down approach when looking to renovate any investment property. While a kitchen and bathroom remodel are the most popular renovating strategies when acquiring a run-down property to rehab, keep in mind that your scale of renovation has to be much smaller than any homeowner would consider. It’s strictly all business for the property investor, and you can’t let emotion get in the way of your rehab budget.
Finding inexpensive solutions and materials
When looking for kitchen or bathroom remodeling ideas, always figure on the most inexpensive solutions and materials (and by inexpensive, I don’t necessarily mean cheap: your project still needs to last!). Remember, you’re trying to appeal to a large segment of the rental population. Simple, neutral colors, functional design and white appliances and basic fixtures should be the rule of thumb. No need to go overboard with stainless steel appliances for the kitchen, or top-of-the line Kohler toilets for any and all of your bathroom remodels. Just keep it simple.
Using substitute materials
The bottom line is that by staying away from high-end materials (like a granite countertop for your kitchen counter), and sticking with a functional laminate countertop, you can save tremendously on your overall kitchen rehab project. Likewise, good bathroom remodel ideas include “substitute” materials that look great, but are a fraction of the cost of their higher-end neighbors. For example, when it comes to vanity countertops in a bathroom, go with composites rather than granite. They are numerous and plentiful to find, easy to choose from and install, and look excellent, relative to granite. They also last a very long time, and take a great deal of wear and tear – two extremely important needs when remodeling an investment property bathroom.
Increasing your knowledge
As you move from project to project, you’ll see that you will develop a knack for understanding what materials will work best for each individual rental property you acquire and renovate. With this facility, and an increased knowledge of what local stores (including big box stores like Lowes and Home Depot) offer the best deals on these materials, you’ll quickly become expert at estimating, then purchasing the most inexpensive, durable and functional materials for your rehabs. Ultimately, your capital spending budget for each investment property will be kept in check, lowering your overall carrying costs, and increasing your monthly cash flow in the process.
photos courtesy of profitindetroithomes.wordpress.com, ortak.co, consumerinformation.ca, propertymanagerpsg.com