The booming economy, growing population, and a stable housing market in Florida make it a no-brainer for house flipping. Fix and flips are often seen as daunting and expensive tasks. If done correctly, however, they can yield incredible profits. So, it is common to acquire a fix and flip loan to help shoulder the costs of any repairs or upgrades you need to do before selling at a profit.
While it is the perfect investment opportunity for beginners, planning and prioritizing your repairs is essential. So, keep reading to ensure your Florida fix and flip gets you the most out of your hard money loan.
Knowing where to start with repairs can be a challenge. However, there are some areas of a house to focus on to yield the greatest profits.
First things first, you need to make sure that the house is habitable. This means that your starting point for your fix and flip should always be to make sure it is structurally sound. The electrical, plumbing, and heating of the house should be in good working order.
Once you have tackled the structure, you can start upgrading the aesthetic features of the house. Refurbishing the flooring, countertops, and cabinetry of the house will give it a fresh look that is appealing to buyers.
To get the most out of your fix and flip loan, it is vital that you focus on renovating the parts of the house that will add value. In this way, you should prioritize your renovations and avoid what is known as ‘over renovating’.
Below are the key areas to focus on when renovating and repairing your Florida fix and flip.
Kitchens sell houses! A kitchen is the central hub of most Florida homes and it is, therefore, no surprise that it should be your priority. The kitchen shouldn’t only look good but should be functional too.
As a result, when planning the layout of the kitchen, it is important that you include the kitchen work triangle. This simple addition will ensure that your buyer has a well-thought-out and efficient kitchen.
While the kitchen upgrade is essential, it doesn’t need to break the bank. Cost-effective improvements include: repainting old cabinets, replacing old handles with newer trendier ones, and using spray paint to give chrome taps a new look.
Depending on your target market, it may be necessary to ensure that the kitchen is family-friendly. Therefore, you may want to avoid countertops with sharp corners. There should also be enough seating and counter space for the whole family to eat and mingle together.
Lastly, storage in a kitchen is crucial. Whether you’re building a house for a family of four or a couple down-scaling. There must be enough storage for all the kitchen essentials in cabinets that are easy to reach and navigate through.
Bathrooms are as important as kitchens when it comes to the resale of a house. As discussed earlier, your first port of call should be the plumbing of the bathroom. Further, with Florida being the most humid state in the United States, proper ventilation is vital!
The choice of paint color and size of tiles should be based on the size of the bathroom. Lighter colors and bigger tiles work well to create the illusion of space. Also, choose tiles and finishes that are easy to keep clean and do not show watermarks and dirt easily.
A damp bathroom with minimal light is very off-putting for potential buyers. So, even if you can’t replace the tiles and give the bathroom a complete makeover, make sure that you fix the small things. Install new light fixtures to brighten it up. Fix the existing faucets and clean the grout so that the tiles at least look new!
First impressions are everything. You want to make sure that when a potential buyer sees the front of your fix and flip, they can’t wait to see more of it.
This can be achieved with a small, easy to maintain, lush front garden. Further, add depth and definition by installing lights around the front of the house. You may also want to add a unique door or paint the old one a bold color to make the house stand out.
Make sure that the fence and yard look good. So, repair any broken boards and maybe give them a fresh coat of paint if they look a little dingy. Keep the yard neat and clean by mowing the lawn and trimming overgrown vegetation. You want potential buyers to imagine their lives here, and a nice-looking exterior can help them picture this before they even step inside!
It is also important to have the right roof – a feature one often forgets about. The roof should be in good condition and in a color that compliments the rest of the house. This will no doubt make a lasting impression. Consider having the roof washed to get rid of any debris or stains that have accumulated over time.
Adding a fresh coat of paint is a great way to give a room a fresh new look. When renovating your fix and flip, it may not be feasible to renovate every room of the house. So, a coat of paint is a cost-effective way to make an old and run-down room look as good as new.
Choose neutral colors that complement each other and the theme of the home overall. Avoid bold colors and patterns as they aren’t everyone’s preference and could be off-putting. We also recommended removing any wallpaper and replacing it with a fresh coat of paint.
Floors can completely change the look and feel of a room or house. Despite being a simple improvement, new floors can impact the resale value of a home significantly!
Consider removing any old, worn-and-torn carpets and replacing them with wood. There are cost-effective options that still look great – like bamboo. You may even get lucky and find some lovely hardwood floors underneath old carpets!
Another way you can make the house appeal to buyers is to incorporate energy-efficient features. Where possible, install energy-efficient lighting and appliances. This way, you can sell the point of how much money potential buyers can save on electricity bills in the long run.
If the fix and flip loan permits, you may want to add some features that put your house above the rest. It’s always a good idea to add features that are sought after in the area.
For instance, in Florida, you may want to add a swimming pool. Other unique features include walk-in closets, a butler’s pantry, and skylights. If there’s space, perhaps include a walk-in closet to add a luxury feel to the master bedroom.
The options are limitless. However, just make sure that you incorporate features that most people will appreciate and enjoy. You want to make the house stand out from the rest and add convenience and luxury without breaking the bank.
Return on Investment (ROI) is the ultimate goal when taking on a fix and flip and is essential to getting the most out of your loan.
To make sure you get the most ROI, your house should appeal to as many buyers as possible. This is achieved by avoiding design elements and features that are polarizing. In other words, features that only target a specific market. So, when fixing up a house, keep things neutral and don’t impose your own style preferences.
ROI also requires planning and adhering to a strict budget. Make sure that you plan out which repairs you want to prioritize and estimate their costs before you begin. This will help you to stick to your budget. After all, you don’t want to invest more than what the house is worth. Make the most out of your fix and flip loan by making small yet effective repairs and upgrades that boost the resale value of the home.
Lastly, research the neighborhood. Understanding the type and price of the houses selling in the area will give you an idea of what unique features you can add to get a higher price.
Fix and flips are a great way to break into the property market. But, with the higher than usual interest rates on hard money loans, you’re going to want to make the most out of this investment.
Spending money on the right rooms and features (and avoiding over renovating) will ensure you reap the benefits of this investment opportunity. So, use these tips and tricks to prioritize your repairs and you’ll come out on top!
How To Prioritize Repairs For Your Florida Fix And Flip To Make The Most Of Your Hard Money Loan | Gauntlet Funding – Melville, NY
