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Updated over 8 years ago,
Can you make too much on a property?
This is to start a discussion about something that is very opinion oriented. We all know losing money on a deal is bad. And there has to be a break even where it was worth your time. But, then there are those times when you bought a property right, fixed it and sold it for a nice profit. My leading question is referring to the last of these options.
Can you make too much? What I mean is do you put in basic options to make an extra buck or do you upgrade things that don't have a ROI per se to give the new owner somethings nicer? In turn, not making as much but giving the new owner more value just because you can.
I can expound on this by an example I've run into. No matter the finishes you choose, you're still stuck with comps to determine your ARV. I am installing a patio French door on the back of the house I'm working on. I could have gotten a standard insulated glass unit or low-e. The low-e cost $46 more. I'm probably not going to make $46 more because I chose to use it. The new owner, however, will benefit from having it while the sun is blaring down half a day (door faces east.) do you make the call to make more money in these situations or do you feel, "I'm making enough on this deal, I'm going to give them something nicer."?
Love to hear some opinions on this.