What are the two most important rooms to renovate ?
When you’re in house flipping it’s very important to know your market and boundaries as far as spending goes, but two rooms you can never be cheap in are the bathroom and kitchen. The bathroom and kitchen are always the two rooms that sell your home in the end, so when you’re flipping a house make sure that you don’t go cheap in these two rooms.
There are a lot of times depending on your region and market that you won’t be able to spend top dollar in those two rooms because you’d price yourself out of the neighbourhood and this is why knowing your market is so important. If you know that you’re in an area that isn’t too appealing to everyone, and where house prices are typically cheaper you need to make sure that you spend your budget wisely. You shouldn’t put $20,000 into your kitchen and bathroom remodel when you will only see half of that back.
Before you get into flipping you should make sure that you have done a lot of research in the area that you’ll be flipping in. Make sure you price out common materials before your first flip so that when you create a budget you have an idea of the prices you’ll be paying for common materials. You also need to make sure that you do a lot of reading on the current real estate market in your area, and if you can you should get some help from any real estate agents you know. They may be able to push you in the right areas for your flip.
A lot of people like staying out of the bad areas of town because they are scared they won’t see their money back, but if you spend the right amount renovating it then you can make just as much as you would anywhere else, with lower risks though. When you’re in a less then admired area you tend to pay a lot less for the home which means you’re at less of a risk when flipping compared to buying in the nicer parts of town. You need to battle the positives and the negatives between each other and then from there decide on your situation where you’ll flip and why.
Make sure that a good part of your budget always goes to renovating the kitchen and bathroom because if these two rooms aren’t above average for the neighbourhood then you’ll have trouble selling your flip and it could sit on the market for a long time. This is the worst thing that can happen when all your money is tied up in the flip, so if you’re going to flip a house make sure you do it right.
