When you buy a house that you intend to fix and flip, it is important to consider the full picture before you begin tackling the remodel. What parts of a remodel are necessary and how much time and money you should put into the remodel depends on a number of factors, including purchase price, neighborhood, the local real estate market, and, of course, your budget.
Fix These Issues First
Any remodeling project essentially comes down to priorities. First, you need to assess the overall condition of the home. Take stock of any issue with the home that makes it non-financeable, such as roofs at the end of their life cycle or otherwise in bad shape. Are there any structural issues that need to be addressed? How is the plumbing and electrical wiring? Is there any evidence of water damage or other issues that need to be repaired? These issues, and others such as missing windows and doors are all first in line for fixing. If the windows are old and single-paned, but in good shape, they are not necessarily an urgent issue depending on your budget, but be aware that this is something that prospective buyers do notice.
Kitchens and Bathrooms
After you’ve calculated how much you can expect to pay to fix the issues relating to functionality, take a good hard look at your budget to find out how much you have available to spend on other renovations. The kitchen is the second-most important room to look at after the necessities are covered, then the bathroom.
At that point, depending on how much money you have in your budget, you can begin to look at other aesthetic remodels such as opening up the floor plan, installing hardwood or laminate floors in place of carpet, updating fixtures, and repainting with fresh paint in neutral color tones.These decorative touches help bring the home up to the expectations of today’s buyers.
Again, functionality is the most important issue, so if the sinks, toilets and appliances are in working order, then you don’t have to install new ones if you don’t have the cash. However, if these rooms look dated or have other undesirable design elements, it could be worth your while to renovate them.
Because every home is different, there is no one-size-fits-all approach for determining what parts of a remodel are necessary. Again, the most important factor most prospective homebuyers are looking for is functionality. The home should be structurally sound, secure, have working electricity and plumbing, and functional appliances. Once these basic functions have been addressed, any additional renovations that need to be made will depend on the unique factors of the house.
Gorilla Capital Can Help Fund Your Remodeling Project
If you are a motivated fix and flip investor, we want to help. Gorilla Capital provides funding for fix and flip projects, helping investors take their businesses to the next level. We’ll provide office support and cover up to 90 percent of your acquisition and remodeling expenses. To find out more about what a funding relationship with Gorilla Capital looks like, check out our Fix & Flip Calculator.