If are in the market to purchase, rehab and flip properties, you need to know where to invest your precious repair dollars to get the highest return on investments. For instance, if you had a choice between repairing the roof or or remodeling the kitchen, the ROI numbers on the kitchen are much higher than new roofs ! In fact, we don’t recall any fixer upper flip sales that was held up because of a roof condition. Here are the top 5 remodeling projects with the highest ROI:
1) Kitchen & Bath : Most fixer upper homes San Jose, Campbell, Saratoga and Los Gatos that we have remodeled required complete remodel of both Bathrooms and Kitchens which bring the highest ROI for a fixer upper flip. For a Small kitchen Remodel will need to budget $800-2,000 for Counter Tops and $2,000-$5,000 for Appliances depending on the location of the property and the near by Remodeled comps. If the recent sales of neighborhood homes offer high-end kitchen, then you have no choice but to increase you budget to match the near by sales to get the similar re-sale price for your fixer upper flip. You can also allocate $3,500 for each Small Bathroom Remodels. As for appliances we strongly recommend our investors avoid Viking since we have been severely disappointed with their quality.
2) New Flooring: Every Fixer Upper that we have flipped required some measure of New Flooring repairs or replacements. We typically like to use Hardwood Floors in Kitchen, Dinning and Living Rooms. Budget $2-$5 dollar for each square feet of flooring that you have to repair or install. This estimate include both labor and material. Some of the pre-finished Engineered wood floors are wonderful and can save tons of time and money from staining the raw wood multiple times.
3) Lighting: Even most of the new homer buyers now expect Recessed Lights in a remodeled home. This is not an expensive repair with each Light costing less than $15 depending on the style and trim you choose. If you have to change the panel, then allocate another $1,000 for the panel.
4) New Windows: We strongly recommend Anderson Windows is a wonderful alternative to Vinyl Windows if you have a fixer upper flip in a high end neighborhood. If you will need larger French or Sliding Doors allocate $1,000 per door. It would be safe to allocate an average $300 for each window when you are considering a Campbell Fixer Uppers.
5) Landscaping: First impressions are critical in re-selling a fixer upper property and Allocate $1,500-$2,000 to create a positive 1st impression in the front and back yards!