Adding Value vs Wasting Time and Money

[Matt Duckworth]

When evaluating finishings or additions to a property you are looking to rent what are some ways you determine what is going to provide the best return and what is just going to eat into your investment? Particularly when it comes to bathroom and kitchen renovations. Would love to hear how different investors run their cost benefit analysis.

[Will Barnard]

Your area will determine what grade finishes you should be installing for your flips. You never want to use items that are "cheap" looking as these items are what potential buyers see and touch. Quality is key. That said, you also do not need to overspend and buy a $1500 light fixture when a $500 one will be just fine. If all the other competition uses quartz counter tops in the kitchen, so should you. If everyone has carpet and vinyl flooring, then a laminate wood upgrade could provide that finishing touch that is better than the others without a major price increase to you.

This all becomes a happy balance between design and budget and that takes experience. Even if it costs you a chunk of your profits, investing in hiring a great person with tons of experience on finish selections for your flip could provide that insight you need for your next one.