Highest ROI Ideas for Adding Value to a flip

[Michael L.]

What are the best ways to add value to a fix and flip that will significantly increase the ROI?

Would it be adding square footage, updating the kitchen, fixing up exterior etc?

[Bob Okenwa]

@Michael L.

Adding square footage is one of the best, and most expensive ways to add value. If your property is a 3/1 and the neighborhood is full of 4/2's then you'd probably want to consider doing an addition. Additions make sense if they stick to what is natural to the neighborhood. Going from a 4/2 to a 5/3 isn't going to make as much a difference as a 3/1 to a 4/2 unless the neighborhood calls for it. Kitchen and baths sells homes as that is where all the shiny object reside. Light fixtures, plumbing fixtures, countertops, cabinets, etc. This is where you'd want to spend your money. Last but not least is landscaping. Here in the desert, lots of flippers just throw rock in the front yard and leave the backyard a hot mess whether it be dirt or dead grass and patches of dirt. Giving the homebuyer a completely new-looking home both inside and out can go a long way as long as you're not trying to turn quick flips into the Taj Mahal. Just stay in line with what the neighborhood aesthetic is and make sure everything LOOKS new even if it isn't new.