Real estate investors have become known for their uncanny ability to add value to unsuspecting homes. That is, after all, the cornerstone of their business: buy at a reduced price, add value, and sell for more than the initial investment. Sounds simple, right? If only things were that easy. Not to say that a rehab can’t go smoothly with the right systems in place, but you had better know what you are getting yourself into.
Despite what you may see on TV, rehabs are not always so cut and dry. It is entirely possible to under-rehab a property, or even over-rehab one for that matter. There are many factors that must be accounted for before you can assume profits. Just how much sellers can expect to recoup from home improvements depends on the job and the region of the country they invest in.
That said, where you are rehabbing a property will dictate some of the improvements that need to be made. Take pools for example: not everyone in Alaska will be willing to pay more for a home with a pool when they can only use it a few times a year. Clients in drier climates, on the other hand, may be more inclined to do so. And while pools are something that many investors aren’t familiar with, they do have their place in the world of rehabbing. In fact, depending on the city you are investing in, pools can add significant value to the home in question. Some experts suggest that homes with pools in the right cities can fetch as much as 22.5 percent more than the area’s median asking price.
If you are looking to add a pool to your next rehab, or are wondering where the best cities to own a home with a pool are, the following infographic will help point you in the right direction:
