You are viewing the printer-friendly version of Remodeling Investment PropertiesRemodeling Investment PropertiesThe first rule of remodeling for investment is this: You are not going to live in this house. Your sole interest is getting the best price for the house in the shortest amount of time. Or, if you're planning to rent it out, you want to sign a lease and stop paying the mortgage yourself.So, every time you find yourself lingering over granite countertops, crown molding and $10 drawer pulls that look like little forks, knives and spoons, ask yourself, "Will it increase the value of the unit? Will it help sell or rent the unit faster or for a higher price?" If not, put it down and back away. This is about making money, not making a personal design statement. What's more, there are rules for resales and rules for rentals. You might legitimately agonize over stainless-steel appliances on a resale house because they're considered an upgrade by today's buyer -- the new appliances could increase the sales price or reduce the selling time, both of which will add to your bottom line. You wouldn't think of putting them in a rental unit, though, unless you're in a high-end market that is willing to pay extra for style points. Otherwise, they're too expensive, it would take too long to recoup the investment and they're going to get beaten up by tenants. Black appliances are just as elegant and won't show dirt, grime and fingerprints nearly as much. So whether you are planning to rent out a property or resell it, you need to invest your rehab dollars wisely. First, curb appeal counts. All of the experts will tell you the same thing: People buy and rent properties from the outside in. If you can't get them out of their cars, they can't see what's inside. That translates into giving the front door and the exterior a fresh coat of paint, or pressure washing brick or vinyl siding, and replacing any damaged wood, broken windows or screens. Clean up the landscaping by removing any dead trees and trimming or taking out overgrown shrubs. Obviously, any junk or clutter in the yard has to go. A fresh coat of paint in a neutral color is standard advice for any house that's on the market; the pros also recommend ripping out old carpet, no matter how well it's been maintained. For rental units, many investors opt for laminate hardwood or tile floors for the ease of upkeep. aa |