Hitting your intended ARV

When looking at comps for a property, or just browsing the MLS, there is nothing more frustrating than seeing a beautifully flipped property BUT the bathrooms have not been touched. If you are looking to flip a property, please do not forget to update the bathrooms. I promise you, it will save a lot of headaches down the road when your property has been sitting on the market for 70+ days with multiple offers significantly under the asking price. When flipping a house, there are two "must renovate" items in the house, the bathrooms, and the kitchen.

While is it important to do a well-rounded renovation, not leaving anything untouched, the two biggest selling points and eye-catching features that any home buyer is going to be looking for is a beautiful kitchen and updated bathrooms, in my opinion. No homebuyer is going to want to pay top-of-the-market prices for a house that has a nice open-concept kitchen, freshly refinished hardwood floors, and well-rounded property touch-ups, with a bathroom that has a yellow stained tub, and pink tile around the walls straight out of the 1950s. Think about it as if you were a buyer. When you are looking at a house, which two areas will you value the most? The area where you get ready every morning, and the area where you spend every morning and evening making your meals, right? 

The bathroom and the kitchen are where you can really show your true creativity during your flip. Don't be afraid to go all out for these two areas, because it will not only help you hit your intended ARV, but it will hopefully help you exceed it as well. This is what will send your house apart from other comps in your area. People are willing to pay a little extra for a house that has a grand master bath, and a large kitchen with lots of cabinet space, beautiful countertops, and high-end appliances. If you are flipping a house that looks like it has ply-wood cabinets, painting them white and putting new fixtures on them is not going to solve your issues, and most times buyers will take notice. Of course, cabinets are expensive, but your ROI will be significantly higher in the long run. Does the house have laminate countertops and appliances that look like they are perfect for a rental property? If you answer yes, then change them out. Unless you want to sell your house for rental prices, don't flip your house like it is intended to be a rental. 

When renovating a bathroom, if you have the room, don't be afraid to put in a tile shower, and a nice soaking tub. Don't be afraid to put in double vanity with new mirrors and eye-popping light fixtures. And for the love of god, please do not be afraid to rip out the original tile from 1953, and get creative with some new wallpaper. 

In conclusion, it is important to make sure that all areas of the house are getting attention, and nothing is being completely forgotten about. Yes, painting, landscaping, refinishing floors, replacing windows, increasing curb appeal, and having a nice laundry area are all important. In my opinion, though, nothing drives me crazier than scrolling through the pictures of a beautiful flip, but the investor cheaped out on the two most eye-catching areas of the house. I am not saying that sometimes the cabinets aren't salvageable, or the current state of the bathroom isn't something that can be worked with, but putting lipstick on a pig is not going to help you hit the ARV that you are looking for in most cases. Treat your flips as if you were going to be moving into that house, and ask yourself, "If I was living here, would I want my bathroom to look like this"?