Once you get to the fun and creative stage of rehabbing a home in your fix-and-flip process, one of the biggest and toughest tasks you’ll find yourself faced with is the kitchen renovation. According to HomeAdvisor, the average fix-and-flip investor can expect to spend over $20,000 for a kitchen renovation, with the largest chunk of it going to cabinetry and hardware. The kitchen can be the greatest selling point of a house and can make or break the success of your rehab. A beautiful, open and well-organized kitchen space will give you buyers lined up around the block for your property. And believe it or not, you don’t have to break the bank to create the perfect kitchen.
We collected examples of four types of real estate investors with four different kitchen rehab budgets and picked their brains about what they were able to accomplish from a modest $600 budget to an extravagant $100,000 overhaul. Whether you’re looking to save or have money to burn regarding your kitchen rehab, these tips will help you know what buyers are looking for so you can build the kind of kitchen that happy homeowners will never want to leave.
#1. Wealthy Wade – $150,000 Budget
What is Being Renovated: The kitchen underwent a total renovation from top to bottom – the room plan was poorly designed, the appliances were out-of-date and the counter tops were laminate.
Biggest Expense: $25,000 was spent on appliances and $47,000 was spent on cabinetry, not including labor. A professional builder was hired to do the entire kitchen renovation.
Challenges Encountered: As we were redesigning the layout of the room, we realized that one of the bearing walls needed to be moved about six inches into the garage space. This was completely unanticipated and very expensive, but definitely worth it for the outcome.
Probability of Going Over-Budget: When you start with a larger renovation budget, the temptation to go over is definitely high. There are a great number of things that can be added to enhance the beauty and the functionality of a kitchen. The more fun things you add, the more they add up. However, I look at it as a good investment, as a high-tech, user-friendly kitchen can cut food preparation and cleanup time in half and serve as an attractive feature to a home.
Advice for Others Planning a Kitchen Rehab: If money is no object, spare no expense finding a team who work well together. We hired a kitchen planner who helped us design a gorgeous kitchen and worked incredibly well with the architect and contractor. They held weekly meetings and anticipated and overcame potential roadblocks quickly and easily. Make sure you are also conscious of the quality of your kitchen elements – you want the appliances and design components to be high-quality and last a long time.
#2. Renovating Rhonda – $45,000 Budget
What is Being Renovated: The kitchen was an awkward U-shape; a terrible use of space. I wanted a big work space for canning and an open concept – I have a family of four and we’re constantly in the kitchen.
Biggest Expense: About $20,000 was spent on appliances, including a new refrigerator and a top-of-the-line stove. We added some stone masonry design features which cost us about $10,000.
Challenges Encountered: We decided to rip out all of the cabinetry ourselves, which caused some unanticipated issues. In the end, we went with a professional contractor. I wish I had the foresight to do this in the first place, but watching home renovation shows filled me with gusto to try to do it myself. I’ll never do that again – it ended up costing more than saving more in the long run.
Probability of Going Over-Budget: We went a little over-budget because we didn’t anticipate some of the extra costs. We had to stud some of the walls and add insulation.
Advice for Others Planning a Kitchen Rehab: Make sure you are prepared for the possibility of extra expenses as you do your kitchen rehab. Either that, or be absolutely meticulous in your planning beforehand so that you’re not surprised later by the rehab costs.
#3. DIY Drew – $19,000 Budget
What is Being Renovated: The property was in the perfect location for a family, so we wanted to redesign the kitchen to have a more open, family-friendly concept.
Biggest Expense: We spent $9,000 on cabinets, $2,000 on new flooring, $2,000 on upgraded counter tops and the rest of the budget on paint and appliances.
Challenges Encountered: One of the craziest challenges we encountered was design consistency. We ended up having to refinish all of the wood floors on the ground floor to make it match the wood flooring we laid in the kitchen.
Probability of Going Over-Budget: We planned this rehab with great precision, which helped us stay within budget. We also were able to save money by getting fixtures from Lowe’s and Home Depot instead of going high-end.
Advice for Others Planning a Kitchen Rehab: Make sure you spend money on what gets used the most in a kitchen. Quality appliances and cabinetry are worth their weight in gold.
#4. Conservative Carla – $600 Budget
What is Being Renovated: When we moved into our house, there were quite a few projects in the kitchen that were left unfinished. We wanted to complete the projects, reduce the clutter and open up the space so that the kitchen would be a room in which people would actually want to sit and eat.
Biggest Expense: The backsplash was the most expensive component. The tile, grout and tile saw rental came to $200. I also bought a large hutch for $150.
Challenges Encountered: I ended up repainting a wall in a color that was extremely bright and distracting. I had to change it, but wasn’t sure which color to go with. I ended up asking my friends on Facebook and they helped me choose a gorgeous color to neutralize that accent wall.
Probability of Going Over-Budget: Fortunately, my brother-in-law is a carpenter and was able to help me do a lot of the upgrades myself and keep costs low.
Advice for Others Planning a Kitchen Rehab: Before you bother with the color scheme, make sure that the appliances, cabinets and other furniture pieces fit well in the space without giving a cluttered feel. Once you have the components you know you want and need to keep in the kitchen, then you can start choosing complementary paint colors and design choices.
Excited to get started on your rehab? We would love to help fund your loan and guide you with your rehab so that your house sells on the market in record time. Just click on this link to schedule an appointment with us to discuss your investment goals or give us a call at 801-948-9774. We look forward to hearing from you and helping you take those first steps towards financial freedom!