When you find that dream rehab property to fix up, it’s important to determine what really needs repairing. Once you do that, it’s just as vital to evaluate what could go wrong with the property later on. This is where spending a little extra on certain items really comes in handy! As you identify potential issues with your rehab, you will learn where buying higher-quality materials will save you hundreds in the long run. Oftentimes, a more expensive material costs far less than a visit from a contractor, plumber or HVAC specialist, not to mention the costs of repairs or replacements!
We at Do Hard Money want you to save as much money as possible with your rehab. We also want you to execute a phenomenal upgrade. Therefore, we came up with a list of 5 items worth spending a little extra cash on as you remodel your fix-and-flip.
Ask yourself what one of the biggest things that can (and usually does) go wrong as a homeowner? More likely than not, the answer lies in a plumbing fixture; more commonly, the toilet. Buying a nicer toilet for your rehab not only spares you future headache, but it attracts more buyers. Potential buyers appreciate the low-flow toilets because they use less water and don’t usually break. If you decide to rent the property rather than flip it, installing nicer toilets will make for happier tenants. These tenants won’t be calling you constantly to repair or replace a broken commode.
2. Heating and Air Conditioning
Remember, your property is a rehab for a reason. If it’s a really old property, it will definitely need a new HVAC system. Also, one of the first things potential buyers will check out will be the heating and air conditioning units. It’s always worth it to do it right the first time and replace the systems if needed. New, gleaming HVAC units act as excellent reasons for buyers to purchase your home. With less money out of their wallet, this expense can save you hundreds in achieving an immediate offer. Rather than having your property collect dust on the market with a less-than-ideal HVAC, you recoup both expenses and profit with a fast sale brought by a new heating and air conditioning system.
3. Bathroom and Kitchen Faucets
Here’s another item which can easily break if rehabbed cheaply. It’s worth it in the long run to pay a little more for better-quality faucets. We recommend purchasing the basic, all-metal Delta. They wear well, last a long time and spare the home owner many potential hassles. Be sure to do your homework as to the best faucets for your rehab. You definitely don’t have to break the bank on simple items. Just make sure they are durable enough and good enough quality to last a good long while. They will be worth the extra price in the long run.
4. Counter Tops and Floors
Now, these aren’t items likely to break. However, spending a little more on these materials can catch a potential buyer’s attention. It can even persuade them to purchase your property. In our experience, we’ve seen homes with granite counter tops move more quickly than those with Formica laminate. Also, you should invest in a higher quality flooring than the simple peel-and-stick tiles. They don’t stay down as well as other options and become a quick problem for your purchasers. If your rehab budget doesn’t have room for nice tiles, we recommend using rolls of thicker vinyl for flooring. They typically experience fewer issues.
5. New Appliances
This dips into the rehab budget a bit, but it’s well worth it to invest in new appliances for the kitchen. Buyers pay particular attention to the kitchen area of a home, so you want to soup it up as much as possible. New, stainless steel appliances which match the cabinets and counter tops really shine as a buying benefit. Your potential buyers won’t have to worry about anything breaking down right away, plus the beauty of a new kitchen will overwhelm them into putting down an offer. Normally with rehabs, you end up having to replace the kitchen appliances anyway, so you might as well use it as a major selling point.
There you have it! If you budget your rehab well and focus on upgrading items with the most potential trouble down the line, you will end up with a very successful flip.
In addition to providing rehab tips and tricks, Do Hard Money offers a wide variety of REI tools and resources right at your fingertips! We also provide access to your very own team of experts to help you get started.
Click on this link to schedule a time to chat with one of our investment associates. They’ll help you take the next steps toward REI success.
If you prefer to get in touch with an REI expert right away, call us at 801.948.9774. We can help you open the door to financial freedom regardless of your credit score or job history!