When it comes to real estate investing, properties can truly be transformed if everything is done correctly. A small, 3-bedroom, 1 bathroom with a one-car garage built in 1980 can become a 5-bedroom, 2 bathroom luxury home with a 2-car garage in a matter of months.
We have seen structures that are barely standing become large, modern single-family homes. If you can build the right team, your investment can give you exponential return. We have great relationships with some of the D.C. metro area’s best builders, inspectors, and maintenance workers. We have many resources at our fingertips, and can help you make the most of your investment.
Here is an example of an investment property that was completely transformed, going from a 3 bedroom, 1 bathroom to a 5 bedroom, 2 bathroom home. The investor made several changes, transforming it into a modern home that was quickly purchased, giving the investor a profit of more than $30,000.
This particular renovation was less extreme than others we have funded, but no matter how big or small the job, there is one question you should always consider: How much value are you creating? For today’s buyer, value means more bedrooms and more functional use of space. The majority of these older properties were built when it was popular to have a home with completely separate rooms. Alternatively, today’s buyer is looking for an open space where they can seamlessly interact with family and friends.
To accommodate this for the property below, our investor and his contractor added a second bedroom to the upstairs level and an additional bedroom and bathroom to the basement, creating more livable space for the buyer. He also chose to remove the wall between the kitchen and dining room, which not only provided that sought-after open floor plan, but it made the space bigger, giving the new residents more room and flexibility. The staircase in the home was also opened up, providing more space and a better overall look and feel of the home’s interior.
Many investors forget about updating the exterior of the property. When it comes to attracting buyers, the property’s curb appeal is what gets them in the door. When deciding on your budget, it’s a good idea so split the estimate into interior renovations and exterior renovations. This property’s exterior was painted, and the perimeter was also updated, proving that a simple coat of paint can completely change the overall feel of a home.
Another way to ensure you get all the value you can out of your investment is to remember that it’s ok to use existing items in the house if they’re in good shape. For example, if the property’s HVAC system is relatively new, you may be able to do a little maintenance and cleaning as opposed to buying a new system. Another part of the property that doesn’t need to be replaced as often is the roof. If you are keeping the property’s main structure and the roof is only 1 or 2 years old, you can do some minor repairs. Generally, roofs last 10 to 15 years.
As always, feel free to reach out to us with any comments or questions.