Pump Up The Value Of Your Rehab Real Estate Investment
There are two legal ways to increase your wealth.
1. Keep more of what you have (e.g., tax strategies, rehab efficiencies, cost savings)
2. Add value to something (e.g., a real estate investment, stocks, bonds)
Let’s focus on adding value to your rehab investments.
The most obvious is certainly bring it back up to standards. We HAVE to do the obvious things such as:
– Ensure there are no plumbing leaks and the entire plumbing system is in good working order, including potable water and sewage/septic and water heater.
– Ensure the electrical system is safe and working. This may require an upgrade. This includes all outlets, breakers, heat and AC.
– There can be no leaks in the roof! Obvious, but sometimes this is hard to determine if it isn’t a rainy season. You might have to take a garden hose to the roof to be sure. Station someone in the attic with a flashlight.
– Get rid of any rotted wood or termite damage, repair walls, etc.
Those items I’ve listed and others like it are no-brainers. But how do we really add value to the eye? We make it pretty!
– We paint all walls and ceilings (usually bright white)
– We replace flooring, or if there is acceptable carpet or tile, we professionally clean and restore it.
– We hang mini blinds on the windows.
– We trim trees and bushes, paint the outside make the exterior look fresh.
Now, to get the sale, or to get it rented immediately we do some of these things that really make a difference (notice the emphasis on kitchen and bathrooms!):
– Replace or refinish the kitchen cabinets, sink and countertop.
– Replace the toilet, vanity, and resurface or replace the tub.
What if we want to really make OUR property stand out on the market? What if we want there to be NO question as to what a great house this is in the buyer’s mind? What if want TOP DOLLAR? Try these inexpensive upgrades!
– Put a decorative fence in front. Plant some shrubs along the front of the house with attractive landscaping bark around it for color
– Replace the front windows with something more attractive.
– Install lighting along the walkway
– Plant a tree
– Install a new mailbox
– Build a deck in the back
– Increase the exterior lighting. Motion sensor lights are a nice touch.
– Install a security system. Sometimes the system is installed free with a year’s monitoring. Make the first year of free monitoring (prepaid by you) a selling point.
– Install a garage door opener
– Install a used hot tub. You might be surprised the amount of folks who no longer want their hot tub!
– Include a microwave.
– Buy new appliances. Kind of expensive, but a deal maker. Try making this an incentive for a full price offer.
– Lay ceramic tile instead of vinyl.
– Go with snap-and-lock hardwood flooring instead of carpet especially in a great or living room.
– Upgrade the faucet to something sleek and modern. There are hundreds to choose from. Go with an extra large sink.
– Replace the cabinet and drawer hardware to something extra fancy. This can make an average kitchen POP for little extra cost!
– Add ceiling fans instead of just new overhead lighting fixtures.
– Add chair rail molding in the dining and living rooms.
– Buy the attractive switch and outlet covers instead of the basic contractor grade covers.
We, as investors, need to make the rehab fit our strategies. If we want to rent the property, you probably won’t add as many upgrades. If you are looking to sell, and you need to get that property noticed, you should add as many of the upgrades as possible within your budget, especially the visual upgrades.
I hope this list has got you thinking creatively about how to pump of the value of your next project!
'The attention to detail and professionalism that Troy and his staff brings to our contract drafting process is unmatched. It’s a rare occurrence to find a law firm that cares as much about your legal protection as you do. But, Doucet Co. LPA is that law firm."
Mr. Doucet and his staff handled two foreclosures and a related matter for me. I found everyone in his office to be professional, effective and responsive. Everything he handled for me got me the results I expected. I highly recommend Doucet Co., LPA.
As an attorney and former client of Doucet Co., LPA, I was very impressed with the representation of Troy Doucet and his firm. I would recommend him to all who face difficulty in saving their home or getting cooperation with their mortgage companies.
If you need legal assistance regarding foreclosure, I urge you to consider putting your complete trust in Doucet Gerling. They will employ their vast knowledge and expertise on your behalf and work to attain a great outcome for your individual needs and situation.
"Troy Doucet is one of the most gifted attorneys that we have ever had the pleasure of dealing with. He treated us with kindness and generosity. We were most impressed with his integrity and high sense of duty to us. If you are looking for an attorney to get the job done we highly recommend Troy Doucet. Our family can never thank him enough for getting our foreclosure problem solved."
My company has worked with multiple law firms in the past, but none have come close to matching the quality we are seeing from Doucet & Associates. If you want an attorney who has a deep understanding of both the legal system AND business, hire them – you won’t be disappointed.
"Mr. Doucet worked wonders in my case. He stood up for me when I felt overwhelmed and helpless and kept my credit rating and future intact. Thanks you so much for helping me and my family."
"My family and I would like to send a thank you with sincere gratitude for all the time, hard work, and long hours set a side daily to represent and speak on our behalf during a very challenging time in our life. Our success is a reflect of your commitment. Thank you Troy Doucet & law firm."