A crucial part of your real estate investing education for flipping houses is learning what improvements are going to add value to a property, which could actually devalue your properties and most importantly what rehabbing items will get you the maximum return on your investment.
Don’ts:
Whatever you do, don’t reduce the number of bedrooms or bathrooms! Sounds obvious, but some have done it and have drastically devalued the properties they have purchased.
Don’t go wild painting and decorating with different colors when flipping houses. You should aim to create a blank canvas that potential buyers will be able to envision their own touches and tastes on.
Do not remove trees, perform garage conversions or add on additional square feet without the proper permits or you could find that your real estate investing business is stuck with the property as no one else can get financing on it.
Do not over improve properties. Just because you put in the finest granite counter tops and fixtures does not mean that you are going to increase the value. Remember that the value determined by an appraiser is mainly based on the size and number of bedrooms and bathrooms as well as location.
Dos:
Do make sure you improve the curb appeal and clean up the exterior. This can yield the biggest returns for your real estate investing business.
Do make sure all rehab work you do is finished correctly. Sloppy painting jobs or poorly fitted flooring will be a red flag and have potential buyers worrying what else you have skimped on.
A good real estate investing education course should also teach you that the master bedroom, bathroom and the kitchen are the most important areas for buyers and should be given the most attention.
