Would you like to rent your buy and hold rental property for the best price possible? It is entirely possible if you make your fix and flip property better than other properties in your neighborhood. Sometimes that may mean investing in items such as quality fixtures or flooring. However, since you will get your money back in a higher rent, they can be a good investment.
Here are steps to help you maximize the rentability of your fix and flip property.
Maximize rentability by: Selecting Attractive Paint
Select attractive paint colors and use the same colors in all your properties. A warm, neutral color for the walls and white trim often work well together. Not only do these colors look attractive but they can make touch-ups with a coat of paint quick and easy.
Maximize rentability by: Choosing a Satin Finish
Instead of selecting a flat finish, choose satin paint finishes. Since they are washable, they will look better down the road.
Maximize rentability by: Avoiding Carpets
Carpet not only looks grimy more quickly, but it can also hold odors and become unsanitary over time. Instead, choose flooring such as tiles, hardwood, or engineered wood. Not only does it look better in the long run, but it is also the flooring of choice for most buy and hold renters.
Maximize rentability by: Selecting Quality Appliances
Some properties, do not come with appliances. However, if you want your fix and hold properties to rent for top dollar, equip them with quality technical fixtures such as nice dishwashers, refrigerators, washers and dryers. Renters will pay more if your property has them.
Maximize rentability by: Including Central Heat and Air
Most tenants prefer homes with central heat and air because they are more comfortable than other types of heating and cooling systems. Not only are renters happy to pay for the comfort and convenience of having them, but they can save you money since they are more reliable in the long run.
Maximize rentability by: Creating a Beautiful Kitchen and Bath
In the past, buy and hold landlords did not create kitchen and bath designs with quality items like granite or stainless steel appliances because it was too expensive. Today, kitchen and bath products are far more affordable than they were in the past. Plus, according to The Balance, renters are also willing to pay higher rents for homes that have them so they are an investment that pays off.
What kitchen fixtures to add to maximise rentability
When it comes to improving the rentability of a fix and flip, kitchen fixtures play a critical role. Kitchen fixtures can range from countertops and cabinets to sinks, faucets, and even appliances.
The right kitchen fixtures can help make a rental property more attractive and desirable to potential tenants. For example, installing quality countertops will not only improve the aesthetic appeal of the kitchen , but it will also make it easier to clean and maintain. Additionally, installing energy-efficient kitchen appliances can help save tenants money on their monthly utility bills. Finally, adding a backsplash or a decorative tile to the walls of the kitchen can add character and charm to the space.
What is the average kitchen remodeling cost?
The cost of a kitchen remodel can vary greatly depending on the scope of the project, materials used, and location. On average, a minor kitchen remodel which includes new flooring, countertops, appliances, and hardware can range from $10,000 to $25,000.
Mid-range kitchen remodels that focus on updating cabinetry and refinishing existing fixtures may cost between $20,000 and $45,000. High-end kitchen renovations can range from $50,000 to over $100,000 for luxury appliances, custom cabinetry, and high-end countertops.Â
What bathroom fixtures to add to maximise rentability
When adding bathroom fixtures to a fix and flip project with the goal of maximizing its rentability, there are several key factors to consider. Firstly, make sure that you are selecting quality products that will stand up to wear and tear. Additionally, consider adding features such as heated floors, towel warmers, and rain showers for an extra touch of luxury. Make sure to select fixtures that are attractive and modern in order to appeal to potential renters.
What is the average bathroom remodeling cost?
The average cost of a bathroom remodelling project can vary greatly depending on the size and scope of the project. Generally, smaller projects may range from $3,000 to $12,000, while larger projects may cost as much as $20,000 or more. This cost typically includes new fixtures such as toilets and showers, tile work, flooring installation, tubs and vanities.
Maximise rentability by: Researching the surrounding area
 Knowing the neighborhood you’re investing in will help you determine what kind of rental property you can create, how much rent you should charge, what your realistic purchase price will be and what areas are most attractive to potential tenants.
Start by looking into demographic data for the area.
Try to identify the types of people who live in the area. Are most of the residents young professionals or retirees? Knowing this can help you determine what kind of amenities and features your property should have in order to be attractive to them. Consider researching rental prices in the area, as well as amenities that potential tenants may be looking for. You should also look into local schools, parks, and other features that could make your property more desirable.
Finally, don’t forget to look into local laws and regulations. Every area has different rules for rental properties, so be sure to familiarize yourself with them before investing in a fix and flip property. Taking the time to do your research can help you maximize the rentability of your investment property and make it an attractive option for potential tenants.
Maximise rentability by: Landscaping the garden
Landscaping can instantly increase the aesthetic and curb appeal of the home, attract potential tenants, and add value to your home.
When landscaping your fix and flip property’s garden, it is important to consider both aesthetics and functionality. Consider adding a few low -maintenance plants and shrubs that can add colour to the outdoor space, as well as trees that will provide shade in the summer. If there is space, adding a patio or decking area can be a great way to make the garden more inviting and usable. Finally, don’t forget to keep it tidy – trim hedges, mow the lawn and sweep pathways regularly.
Maximise rentability by: Professional Inspection before you buy
A professional inspection can help identify any potential issues with the property that could lead to expensive repairs or renovations down the line. In addition, it can provide valuable insight into the condition of the house and its value to potential tenants or buyers.
For example , a professional inspection can help identify any issues with the electrical wiring, plumbing, heating and cooling systems, as well as any signs of structural damage. A professional inspector can also provide advice on repairs that may be necessary in order to bring the property up to code or improve its rentability. Taking the time to do a thorough inspection is key to avoiding costly surprises down the line and maximizing the rentability of your fix and flip property.
Maximise rentability by: Talking to potential buyers early
One of the most important things to do is to start talking to potential buyers early in the process. This will allow you to get an idea of what kind of features they are looking for in their dream home, as well as what kind of amenities they are willing to pay for to ensure yourself your maximum profit.
By engaging with potential buyers early, you can also get an idea of the current market rates and what kind of rent your property can fetch. This will ensure that you are pricing your property correctly, allowing you to maximize rentability and turn a profit on your investment. Talking to potential buyers is also a great way to determine what kind of renovations or upgrades would make your property more attractive and add value. Taking the time to engage with potential buyers early in the process can help you maximize the rentability of your fix and flip property.
Maximise rentability by: Not overpaying in the first place
One key factor in achieving your fix and flip property goals is not overpaying the purchase cost in the first place. Researching comparable homes in the area as well as consulting with a real estate professional can help you get an idea of:
– The price range of homes to buy and to rent
– What a fair price for the home would be to rentÂ
– If the property is likely to be a profitable flip
– Understand your potential profit margins from buying or renting
Maximise rentability by: Understanding repair costs and your expected ROI
Another important aspect of successful investing in a fix and flip is understanding your anticipated cost of repairs and calculating an expected return on investment (ROI). Knowing how much you can expect to spend on repairs, as well as the potential rental income that can be generated from the property, is essential for maximizing rentability.
The first step in determining repair costs is to conduct an inspection of the property . This will help you identify any potential issues and calculate the renovation cost of any necessary repairs. Once you have a good understanding of the repair costs, it is important to compare these to the estimated rental income in order to determine your expected ROI. Doing this research upfront can help you make an informed decision about whether or not the property is worth investing in and maximize rentability.
Maximise rentability by: Being ready for unexpected costs
There is always the potential for unexpected costs. It’s important to be prepared for these, as they can have a huge impact on your rentability. Here are a few tips on how you can best prepare yourself for any unanticipated expenses when engaging in a fix and flip project:
1. Research the property thoroughly before you make an offer .
2. Get a professional inspection done to identify any potential issues and calculate renovation costs.
3. Have a detailed financial plan that includes your financing costs, rehab costs and labor costs.
3. Have a contingency fund set aside for unexpected expenses.
4. Stay within your budget and try to complete the project as quickly as possible, in order to minimize any additional spending.
Rentability Mistakes
As experienced flippers are aware, it’s as important to know what not to do as it could do some or all of the following:
– Decrease your rentability and overall curb appeal
– Negatively impact on your ROI.
We’ve listed the biggest mistakes to avoid below. If you’re a beginner in the world of house flipping then you might be interested in our beginners guide to house flipping.Â
Don’t reduce the square footage of your fix and flip property
Reducing the size of a property may seem like an easy way to save money on renovations, but in reality, reducing square footage can have a significant negative impact on rentability.
For starters, tenants are more likely to look for larger homes, as they typically offer more space and value for the money. Reducing square footage can also significantly reduce the number of people who would be interested in renting your property, which means you are likely to reduce your profit potential.
Not researching the real estate market before you buy
Without researching the local real estate market you run the risk of making costly mistakes in terms of choosing a property that won’t be as rentable as possible.
It is impossible to know what prospective buyers are looking for in terms of amenities, location, and size without having researched the housing market beforehand. To maximize rentability, you should be aware of the features that potential tenants value most in order to ensure you make an informed decision when selecting a property and maximizing the ROI of your investment.
Not speaking to other real estate investors or a real estate agentÂ
Speaking with other investors will help you gain insight into the area you plan on investing in. They will have knowledge about the local market, what amenities are important, and what people are looking for when renting a property.Â
Speaking with real estate agents can help you get an idea of the current rental rates in the area, so you can make sure that your property will have competitive rentability. It’s all about setting yourself and your house flip up for success.
Poor understanding or what lenders or loans are availableÂ
When attempting a fix and flip project, it is crucial to understand what money lenders or money loans are available to you. The wrong type of loan can lead to increased expenses and lower probability of maximizing rentability.
For example, many people think that they can use a traditional mortgage for their fix and flip project. However, these types of loans do not typically cover the cost of renovations. If you try to use a traditional mortgage, you will have to cover the renovation costs yourself, which can cause your project to take longer and reduce the potential rentability of your property.
It’s important to research lenders and loans that are suitable for fix and flip projects, so you can get the funding you need without having to pay out-of-pocket for renovations. Doing your due diligence can significantly increase the rentability of your property.
