Investor Remodel special!! After spending a lot of time working with our investors, we have been able to reduce the costs and necessity of normal remodel work for many of our investors. This recent Investor Remodel allowed an owner/investor to purchase a home that was sold as a wholesale deal. In every wholesale transaction, the Seller never discloses any repairs that are needed to get the home in rentable condition. For each Investor Remodel, we take this into consideration and help them make the most informed choice as they move forward.
Renovating a rental property can quickly add value to the property, increasing rent, and increasing rentability. Renovation choices can make or break your first few years with your rental property, especially if you are considering a refinance in the soon. As a real estate investor who has renovated multiple properties for myself and for clients, I have learned some very valuable lessons that I am happy to share with you.
First, you have to understand why you are renovating the property in the first place. One, common response, is to fully depreciate the property. Another is to add equity to the property for either a future sale or to refinance the property and leverage the increased equity. However, the best reason to renovate the property, is to maximize the Return on Investment (ROI) by increasing the rent. I also call this Cash on Cash return, for every dollar you invest, what is your return. The average dollar amount for our recent renovations are between $12-17 a square foot. Of course, these are for entire renovations, not just updating a few rooms.
What is Next for the Investor?
If you have made the decision to spend money remodeling the home, now what? What is the best ways I can spend money renovating my home to increase my long term rental investment? For most of my investments, I focus on floors, painting, bathrooms, and appliances. For many of our investors, they do not have to complete all of these remodels and there is usually a few items that are important for renting the home, like neglected HVAC/appliance repair, plumbing leaks, structural issues, etc. Over the years we have learned that condition of the property has a lot to do with rentability.
What if I want to do More?
Home Improvements that give you the best return on your investment (to increase the price in a traditional sale or refi situation), you would first focus on minor work in the kitchen. Next, you would consider working on a bathroom, and then adding additional square footage. After that, a major kitchen remodel would be the best investment. Most of these remodels or additions cost a minimum of $15,000.
We’re the Charlotte property management specialists.
When it comes to local homes, White Property Management has the expertise you need to succeed. If you own rentals in Charlotte, NC or the surrounding area, you don’t want just any property manager handling your home’s needs. Instead, you want support from a management team who puts your concerns first. A team working hard to help you hit your financial goals and keeping your property in great condition. Many property managers make big promises about their services. But few are able to consistently deliver the results your investment deserves.
At White Property Management, we aim to provide the best Charlotte property management support possible. We work hand-in-hand with our clients to identify simple ways to boost earnings, reduce turnover rates, and keep maintenance costs in check. Whether you own one rental property or several dozen, we have the capacity and knowhow you can rely on, time and time again. Call us today to schedule a free rental consultation with a member of our team.