Renovating to Add Value

[Clay Collins]

When renovating a property to add value, what do you see adds the most value? Redoing the kitchen, bathrooms, upgrades (HVAC, roof, plumbing), landscaping etc.. 

[Marty Boardman]

Over the past 2 1/2 years I've stopped focusing on "adding value" to my fix and flips. Instead, I look at what else is available on the market RIGHT NOW. With the lack of inventory buyers have few options and they're willing to overlook outdated kitchen cabinets, countertops and bathrooms. They're even willing to buy houses that have older windows, roofs and HVAC systems. Their mindset is "if I can just find a house I'll do the improvements myself later".

I mostly do the basics (carpet, paint, appliances, light staging) and price the property based on what else is available to buy. If there are few homes (or none) I'm very aggressive. This strategy has been more profitable than my past HGTV-style rehabs because it saves money on labor, materials and holding costs.