Making a Rental Property Profitable

canton condo
Two of our clients outside of their brand new condo that they decided to use as a rental property.

Are you thinking of taking the plunge into owning an income property?  We’ve helped clients buy and sell income properties that have turned out to be very profitable for them and we can offer our insights, tips and professional advice on steps to take to make the transaction a positive, profitable one.  Take a look at this post for some initial tips.   There are definitely costs that could tank your investment on a rental property and that’s what we want to avoid.  Check out this post for the 3 hidden costs that can tank rental property profits.    Then, come find out about what investment properties are currently on the market and talk to us because we may give you out of the box ideas as to how your purchase could become a rental property.

Which Weekend Project Boosts Your Investment?

coldwell-banker
Photo Credit: http://www.blog.coldwellbanker.com

Weather is warming up!  It may inspire you to get your tool belt on and do some home improvements.  Coldwell Banker is here to help make sure that the projects you’re doing are making a solid return on your investment.  You’d be surprised at how much your home value can increase with the right projects.  Learn about which 5 projects you should get started on today.  Interested in finding out what your home could currently be worth in the condition it is in today’s market?   Use our valuable interactive pricing tool!

Tip Tuesday: Remodeling to Yield Investment

Are you just moving into your new home?  Are you waiting to sell your home until you do some updates?  Whatever your situation, be sure to plan out your remodeling projects wisely before you splurge to yield the most investment.  For every remodel, the hope is that it will yield an 80% return.  What remodels are most likely to make this high of a return on your investment? According to our experience as well as research from Angie’s List and US News, we’ve compiled this list of the top 3 remodels that will yield the highest return on your investment.

Photo Credit: http://money.usnews.com/money/personal-finance/articles/2014/03/06/which-home-remodeling-projects-are-worth-your-money
Photo Credit: http://money.usnews.com/money/personal-finance/articles/2014/03/06/which-home-remodeling-projects-are-worth-your-money

1) Siding & Front Door:  This goes back to the old tried and true theory that curb appeal is 1/2 the battle is selling your home.  One of the first pictures that potential buyers will see in your home is of the outside.  Not to mention, when buyers drive up to a home they want to immediately feel like they’re driving up to a good investment.  Depending on the size of your home and the type of siding and door you choose, this can be a relatively low-cost remodel, but make a drastic difference.  After seeing your home, a buyer is going to walk in.  You want to be sure that the front door is new, functioning well and doesn’t immediately sound an alarm for a buyer to think that they need to replace it and thus take down the price of your home before they’ve even fully walked in.  A siding remodel on average yields 80% return on investment (Angie’s List) and a front door replacement yields a 96.6% return on investment (US News).

2) Kitchen:  We say kitchen and everyone immediately thinks dollar signs, which causes a home owner to shudder.  But think about those dollar signs in a different way…85% (Angie’s List) and 82.7% (US News) return on your investment for even a minor kitchen remodel.  There are some other people who will think about money signs too when they look at a kitchen.  They are your Realtor who will be doing a market analysis to compare and price your home.  They are the Appraiser who will be determining what the worth of your home is.  And finally, the buyer who will immediately see an updated kitchen and think about all of the money and time they’ll be saving by purchasing a home that’s already done.  Remember, this is any type of kitchen remodel; low-end or high-end.  See what this kitchen looks like after an $800 make-over.

3) Deck Addition or Updated Deck: When doing a deck remodel it’s important to remember 2 things: 1) the style of your neighborhood and 2) choosing materials that “keep” well.  You want to have an updated deck but at the same time not go so extravagant that it doesn’t match your neighborhood appropriately and thus, will never help your home yield the return it should.  Buyers will simply see it as out-of-place for  the neighborhood. Also, your home deck will go through snow, rain, and sun pouring down on it.  You’ll want to choose materials that will last a long time and keep your deck showing well.  Done correctly a deck addition/updated deck can yield a return of 80% (Angie’s List)/87.4% (US News).

Other remodels that will yield strong investments include window replacements (particularly energy-efficient), bathrooms and converting your attic or basement space into usable, livable space.

There are also remodels that will yield investment, but not as high.  The list may surprise you.  They include a home office remodel, sunroom addition, and master suite addition.  The fact is that while those features are wonderful and a luxury to have, they are simply luxuries and don’t add much value in an appraisal or in a buyer’s eye.  Many of our clients would agree and tell us that these are nice features to have, but not necessities.

So if you’re a new home owner just moving in and looking to make the house their own or that seasoned home owner that is ready to begin thinking about listing their home or a homeowner that has no intentions of moving anytime soon but know they one day will or simply want updates to their home, think about what will add value to your home before you splurge!