All Forum Posts by: Willis Yoder

Thanks Willis!

I think it would be beneficial to research the local market and buyer demographics. Here's what I would do:

Know Your Target Buyer: Is the neighborhood attracting first-time homebuyers, luxury buyers, or families? First-time buyers may appreciate modern, budget-friendly finishes, while higher-end buyers might expect premium materials like quartz countertops or custom cabinetry.

1. Study Local Listings: Look at recently sold homes in the area, particularly those at the top of your price range. Pay attention to the kitchen styles and finishes they feature—this will give you a sense of what buyers are responding to.
2. Focus on Timeless vs. Trendy: In most cases, a modern, clean look with neutral color schemes (like white or gray cabinetry) tends to have the broadest appeal. Sleek, stainless-steel appliances and durable, easy-to-maintain materials like quartz or granite are always safe bets. Trendy materials (like bold backsplashes) are best used sparingly.
3. Cost-Effective Upgrades: A fresh coat of paint on cabinets, new hardware, or upgraded lighting can make a big difference without a huge investment. Open shelving is also an affordable way to add a trendy, airy feel without a complete overhaul.
4. Energy Efficiency: In many cases, energy-efficient appliances can add significant value and appeal, especially with eco-conscious buyers.

In terms of consistent winners, I've found that shaker-style cabinets, subway tile backsplashes, and quartz countertops perform very well across different price points. These are materials that feel both modern and timeless, making them a great long-term investment.

If you ever need help financing your next flip or have more questions about remodeling for resale, feel free to reach out!

Great question Willis! 

One of the highest ROI renovations in fix-and-flip projects is kitchen remodeling. Buyers tend to focus on the kitchen, and updating it can drastically increase your home's appeal and value. But here's the key: it doesn't have to be a full, high-end renovation to make a big impact.

Tips to maximize ROI on a kitchen remodel:

• Focus on cosmetic upgrades: refinish or paint cabinets, add modern hardware, replace countertops with affordable yet attractive materials like quartz.
• Upgrade appliances to energy-efficient models if needed, but don’t over-splurge on luxury brands.
• Install new lighting fixtures and update backsplashes for a fresh, modern look.

Typically, a well-executed kitchen remodel offers a strong return on investment, usually 70-80%, sometimes more depending on the market.

If you're thinking about financing for your flip or want more specific ideas on where to spend wisely, I will be happy to help.

Regards,

Drago

I take a look at the comps from the past 3 months and compare each property's finishes, livable sqft, condition of backyard, type of flooring, type of cabinets, etc. From this, I start to see trends appear showing what features buyers are willing to pay a premium for and go from there. 

I advise my clients to compare their property to the comps they are looking to chase for the ARV & start with the kitchen/bathrooms and then work their way through their budget to match or slightly top the comps in the neighborhood.

Hi Willis,

ROI can definitely vary between markets, even within the same region. South Bend and Elkhart may have different buyer demographics, price points, and demand drivers.

The median list prices are under $160,000 in South Bend, targeting lower-priced properties allows for better profit margins. Look for homes priced below market that need mostly cosmetic updates.

Different property types (single-family homes, multi-family, condos) can yield varying ROIs. In South Bend and Elkhart, single-family homes seem to offer better ROI due to demand from both homeowners and investors.

Kitchen rehabs tend to provide the most ROI in all markets. In the Midwest, finishing basements or adding outdoor living spaces can be particularly valuable. Local buyers are seeking modern finishes like LVP flooring, granite countertops, and stainless appliances.

South Bend's economy is influenced by Notre Dame University, while Elkhart is known for RV manufacturing. Target renovations that appeal to the local workforce and lifestyle. In college towns like South Bend, features that appeal to potential landlords (like extra bedrooms or separate entrances) will boost ROI.

In colder climates like Indiana, spring and early summer are often the best selling seasons. Plan your renovation timeline to list properties during peak buying months - also take into consideration that snow and rain will affect your rehab.

Another way that you will want to take climate into account is that given the cold winters, energy-efficient improvements like insulation and modern HVAC systems can be attractive to buyers. These upgrades can help differentiate your property in the market.

Let me know if you want to connect! Regards,

Jackson

When I was flipping I noticed that the attraction was broken out in two categories:

The woman wanted to see improvements in the kitchen, baths & closets

The man wanted to see that it had a nice basement, garage & yard

The woman's desires seemed to add greater value than those on the man's list....and the woman's list always took precedence if the budget couldn't handle all of them.

@Willis Yoder, I don't like this question because it operates in a vacuum.  

Not only is the demands of each buyer going to vary by market and submarket, but also asset by asset.

My favorite example of this was an old season of Flip or Flip, where they bought a house in LA county, versus their standard stomping grounds of Orange County.  Suburbia, typically, values space.  Urban areas, typically, value design.  

But more so, in any flip, it is the entirety of the experience. Whether you are going barebones or luxury, the property needs cohesion.  The landscaping can't be immaculate while the roof is still 20 yrs old.  The kitchen can't be fully upgrade with a nasty original bathroom.  The walls can't be cracking and 1990's beige when you installed brand new hardwoods throughout.

And, while new cabinets and counters and appliances are nice, if they are not well laid out, or you jam an island into a space that does not allow for stools to be pushed out, or the oven door to open because it hits a cabinet pull, that new kitchen is meaningless. 

While all of this may seem obvious, I have personally encountered all of it in flips in my market, so clearly not every flipper thinks about something as basic as "can my refrigerator door open all the way?".

From our experience, when flipping properties the most efficient ways to spend your money are the following:

Focus on kitchens and bathrooms, as these areas consistently provide the most value for your investment. A midrange kitchen remodel has a 96% ROI, costing an average of $27,492 and adding $26,406 above your cost in value.

You could also go for slightly larger rehabs, such as adding a bathroom or a bedroom. For example, adding a bathroom can increase your home's value by 10-20%, depending on the quality and type of bathroom. A full bathroom addition can potentially boost value by up to 20%, while a half bath might add around 10.5%. The cost of adding a bathroom typically ranges from $25k to $60k for a full bath, or $6k to $12kfor a half bath. However, you can expect to recover about 50-55% of your investment when selling the home.

Improve curb appeal, clean up the exterior, add landscaping, and make minor improvements to enhance the property's first impression. Landscaping has the largest ROI (of about 200%), adding a wood deck or a patio will also provide a big increase in value (100% ROI).

Add living space, consider converting attic space, finishing a basement, or repurposing a large living area to add a bedroom without expanding the home's footprint - this will give you an average ROI of around 75%. If you're going for a larger rehab, adding an ADU or doing an enlargement also provides a good return, although it is smaller than what we've seen before, around 50% ROI.

We're a private lender. If you have any more questions or are looking for funding please feel free to reach out to us.

Regards,

Jackson

Relating to renting, when renters compliment a unit they almost always mention the kitchen. A beautiful spacious kitchen can make or break a rental. You can keep it simple and just do a modern kitchen, but I've found if you can add one thing that makes the kitchen "Pop" it will rent much better. Example: A backsplash that is a different color from rest of the kitchen (a warm green or red against white and grey walls), a tile that has a unique look or pattern to it, crown molding on cabinets, or a unique light fixture.