If you have recently purchased an investment property by taking advantage of amazing foreclosure deals – and other discounted properties – currently on the market, then you are more than likely deciding whether to rent out the property or to sell it for a profit. Fortunately, the current real estate market makes now a perfect time to do either!
Regardless of whether you are looking to rent or sell the home, renovations are always part of the plan when it comes to distressed properties. Therefore, enter the renovation process prepared—knowing what buyers are looking for and how you can best market your property.
Making Desired Renovations
If you are simply trying to rent out the home, then you can often get away with making essential renovations and providing minor cosmetic changes to increase the appeal of your rental property. However, if you are looking to sell the home for a profit then you must be prepared to put in the time and energy necessary to make the property stand out among others on the market.
Below are some essential renovations that can help you increase your return on your investment by making your investment property more appealing to potential buyers.
Kitchen Upgrades: One thing that everyone looks at when buying a new home is the kitchen. Therefore, it is important to know current kitchen trends. Taking time to upgrade appliances and sprucing up the cabinets and countertops if necessary can greatly increase your ability to use the kitchen as a selling point.
Curb Appeal: It is essential that you spend time sprucing up the yard to create a great first impression for the potential buyers. Curb appeal can go a long way in helping you sell the home.
Painting: More often than not, you can help a home look new and fresh by repainting the entire interior of the home.
Bathroom Upgrades: Another commonly desired upgrade involves the bathroom. Having up-to-date fixtures can go a long way in helping increase your chances of selling the property.
Along with cosmetic renovations, it is also important to properly stage your investment property. Strategically placing furniture in the home can allow you to highlight the property’s strengths and downplay the property’s weaknesses.
Finding the Best Real Estate Deals
If you have not already selected your investment property, then consider everything from short sales to foreclosures. These properties can often be purchased well below market value and with minor to moderate renovations and repairs it can be placed back on the market, increasing your chances of a profit.
Similarly, if you are interested in investing in commercial real estate, then be aware of what entrepreneurs are searching for.
At the end of the day, the first step is finding a great investment property at a good price and with a lot of potential. Everything from the location to the structure of the home or commercial property is absolutely essential. Once you purchase the property, find out what buyers and renters are looking for and renovate those areas of the home in order to make your investment property more appealing. Happy investing!