Biggest Return on Investment when Remodelling a Home
Whether you are preparing your home for a quick sale or maybe you have just bought a new home or a investment you want to flip, here is a list of the remodelling jobs that will bring you the biggest return on investment:
Replacing your entry door Return on Investment – 85.6%
Deck addition ROI – 77.3%
Garage door replacement ROI – 75.7%
Minor kitchen remodel ROI – 75.4%
Window replacement (wood) ROI – 73.3%
Attic bedroom ROI – 72.9%
Siding replacement (vinyl) ROI – 72.9%
Window replacement (vinyl) ROI – 71.2%
Basement remodel ROI – 70.3%
Major kitchen remodel ROI – 68.9%
I have been showing way to many homes that are not getting the price they could potentially get if they just did a few minor renovations…..
Simply painting out old oak cabinets with a fresh coat of paint, changing the countertops, updating the appliances and changing out the light fixtures bring this dated kitchen into a modern, inviting kitchen.
Tips for Investing in Rental Real Estate:
1) Priority #1 – You make money when you buy real estate – Meaning to purchase below it’s value, so once you own it, it has already gone up
2) Priority #2 – You will profit when you sell – by working on the property, increasing rental income, tenancy quality, making some renovations, the property should go up in value
3) Priority #3 – Does the property cash-flow? – by charging rent, the answer is “yes”. Therefore no matter what happe…ns in the market itself, you are always making money.
4) Priority #4 – Cash-on-cash return – eg. if you put $50,000 down on a property and it generates $5000 positive cash flow per year, your cash-on-cash return is 10%. Investors like 35-50% return which will come back when you sell.
5) Priority #5 – Is the area where I am purchasing the property appreciating – although this is very important, it shouldn’t be the #1 priority.