5 Home Renovations That Raise The Value Of Your Investment Property

what's up bigger pockets it's matt piche the fruitful investor and in this video i want to talk about the five ways we can raise and jack up the value of your investment property so you can make more money in your portfolio so we all know the great three ways we can make money in real estate cash flow mortgage pay down and appreciation i kind of just made up that term the grade three but that's we're going to call it that's the bread and butter of your real estate investing business but what if there was a fourth way you can make money in real estate and that's what i'll be talking about today so that is through smart renovations so number one we want to spend the majority of our money and our budget in our kitchen so not surprising that's the hub of the home that's where the most you know people spend most of their time so that's what we really want to make nice so i'm going to show you some clips in this video of my past projects and kind of what we're doing what our style is but what you want to do is use a light colored kitchen at least right now in 2019 that's kind of what's happening so we use white cabinets with a light countertop as well it's very modern very sleek if you're doing a flip right we want to use a stone countertop so we're also using like a white quartz again super light super bright that's what's in right now that's what the people want and it's also a neutral tone so it's not going to like offend anybody or turn people off everybody can kind of like it everybody can design their kitchen around a neutral white kitchen so that's the recommendation i have for you and spending all of your money here is a great way to really jack up the value for example our average kitchen for a rental property like brand new cabinets countertops sink taps appliances etc is around eight to ten thousand dollars on average if we're doing a flip you know it's probably about 12 to 15 000 because we're getting better quality appliances fridge and stove and stuff so we're spending a little more there but that's where the returns really going to come so for spending 10 grand in our kitchen it's going to add like 20 to 25 thousand dollars in the value of the property so very very smart to put a lot of money here and if you don't want to spend a lot of money let's say you're redoing a home or you bought a property and your budget's pretty slim and you don't have the money to replace all the floors or all the baseboards all the bathrooms etc at least really make that kitchen really pop because that's how you're going to get the rental or if you're flipping it sell the property as well so spend all your money in the kitchen not all of it but a lot of it the second place you want to spend it the second most important place is again not really surprising the second place a lot of people spend a lot of their time in the home the bathroom so what i really recommend as well is using double sinks you've heard of his and her sinks or his and his or hers or hers right so we want to use double things that's what really attracts the buyers and the renters and again make that color palette very light so we use a white hexagon floor with a black uh grout i think it's called hexagons octagons i don't know man but that's the shape we're using on the floors we're using white subway tiles around the tub we're using kind of a cool ikea floating vanity in our properties right so very trendy very cool and that's the pallet we use across all properties even flips we're using the same kind of uh renovation value that we're using in our rental property so you can see how important to me it is to have a really nice home i don't really advocate overspending on a property right but we do like a lot on our properties we always flip our rental properties top to bottom because we want that high quality tenant i want someone that's going to stay and you know treat the home well i want a family who's going to stay for three to five years or more that's just kind of my game plan so i do that by doing these strategic renovations and really blowing my tenants minds when they come through the property or they see the property advertised online right i'm blowing their mind like this house is this nice for this amount of rent that's kind of the game plan we're doing to really have a boring business again if you know me and you follow me you know how important that is to me to have a boring business so that when i'm traveling which is my love you know to costa rica hawaii bali i don't want to be getting phone calls from my property manager saying matt your attempt didn't pay rent they broke the toilet they punched a hole in the wall right i don't have those kind of tenants because of the value renovations and the type of properties we're buying almost every single one of my properties always pay rent on time very rarely do my tenants miss rent but they always pay right like almost never have problems with my tenants for example i'm going on a tangent here but i think it's very important right we now have 26 rental properties at the time of making this video i've been investing for nine years guess how many times i've had a tenant not pay rent and i had to be victim or they screwed me et cetera guess how many times it's happened in nine years over 26 properties one time and it was very very easy to get them out you know it was it took longer than it should have but they finally agreed to leave we got the money et cetera but that was the worst experience i had in my portfolio again it comes down to the type of properties we're buying and how we're doing the renovations okay tangent over let's get back to the third thing you want to spend your money on and that is flooring so this is also the order of importance okay so flooring again i really like uh seamless floors that go throughout i hate is a huge pet peeve of mine when there is one type of flooring in the kitchen another type of flooring in the living room another type of flooring in the bedrooms upstairs etc i hate that i like one flooring throughout the whole house it makes it seamless the house has flow it seems bigger it seems brighter and that's what you want when you're trying to sell a property or find a tenant you want to make things look bigger look better than they are so we use a light colored floor again we'll show you some examples here what we do it is a nice modern gray floor looks super real super cool it's actually a crushed vinyl resin so it's not even laminate it's like crushed vinyl commercial grade it is almost impossible to scratch unless you really want to scratch it you know there's no way of scratching it and that's what we want we want good wear and tear materials in our rentals so they look great after three years five years six years when i want to sell that property the house should look almost the same as it did when we first did those renovations so we're planning for the future and using smart materials as i always say spend a little more on your materials because the labor is the same if you buy a cheap crappy laminate and put it down it's going to cost the same for your contractor to put it down let's say it's 25 bucks an hour 30 bucks an hour if you use a better material it's the same 25 or 30 bucks an hour so you might as well spend that little more on the material make it look cool and make it stand up to wear and tear the fourth thing i really like to do for our renovations is use a feature wall so we're kind of getting into personalizing which is not always a good idea but again it's a nice neutral kind of modern blue color but really pops with the color scheme that we have the light gray walls the light gray flooring the big base boards right that feature wall really pops if my tenants want to paint it over when they move in fine but that's how it separates my properties from the rest which is the main reason why i use it it looks cool it looks modern but it also separates my property from the rest when tenants are looking through you know dozens and dozens of properties online for which house they want to move into or when they come and see six properties in one day they can't really you know see which property was what they'll remember mine because of the feature wall and it'll stand out in their mind of how nice it was renovated so a little different looks cool looks modern but a feature wall can really look cool in a rental property the last thing i want to talk about and there's many more but i gotta wrap this video up is curb appeal so a lot of people disregard this they just i'll just spend all my money on the inside do a sick kitchen a cool bathroom except for nice flooring but the outside looks like crap you got weeds growing over the window grass looks terrible etc you really want to just pay attention i don't want you to spend as much as all of these right but pay attention to the curb appeal cut the grass at least you know take the garbage off the front line pull the weeds that are six feet tall etc don't spend a lot of money or a lot of time here especially for a rental property on a flip we want to spend a little more time and almost treat this as equal as these but for a rental property just clean it up right you want the pictures to look good and it's the first impression that your tenants have when they walk up to this property so you want to kind of set the tone for when they walk into the house and then you blow their mind with your sweet renovations that i just shared with you right so that's the video i hope you learned something if you did smash that like button right below and don't forget to subscribe to the biggerpockets youtube channel right below here so you can see more great videos if you want to learn more about me just type in the fruitful investor on youtube and you will find me i'll see you in the next video

Channel: BiggerPockets

Views: 239,572

Keywords: biggerpockets, real estate, real estate investing, investing, investing in real estate, bigger pockets, home renovations, home renovation projects, home renovations that, home, renovation, mat piche, fruitful investor

Id: DM-qtNFKGZY

Length: 8min 41sec (521 seconds)

Published: Wed Sep 25 2019