The upshot: “It is hard to suggest a certain ROI on the project as there are so many other factors to take into account,” Casper said. “These variables – such as the location, duration of the project as well as the extent of renovation – need to be factored in. Doing research and working with the right partners – including the right financing partner and contractors – can help mitigate some risks, and help ease unexpected outcomes.”
Investors seeking to more quickly renovate homes for the rental market might consider improvements that are not labor intensive with less reliance on the supply chain, Casper said. These could include improving a home’s curb appeal, painting the house, and updating lighting fixtures.
Back to the aging housing stock, consider this: “Sixty-five per cent (65%) of US homes were built when Jimmy Carter was president,” Casper offered, putting things into stunning perspective. “The shag carpets, popcorn ceilings, outdated electrical outlets are some examples of the areas that come to mind. “The large majority of our customers’ projects include updating and renovating the kitchens, bathrooms, flooring and interior paint. Other areas that require updating and maintenance often include replacing the roof, windows and exterior work, along with necessary repairs to mechanical systems – plumbing, electrical, HVAC – that come with the aged housing territory.”
Ready to fix and flip? Kiavi’s tips yield something of a road map: