Considering selling one of your investment properties? Perhaps you are thinking of selling as is and cutting ties. While a major remodel may set you back financially, there are some minor upgrades you can make that could pay for themselves and then some (Even up to 400% ROI-- keep reading!). Not to mention, upgrades have the potential to speed up the sale. Plus, we’ve partnered with LightStream, the nation’s premier online consumer lender, to offer low, fixed rates for virtually any home improvement project without requiring home equity or an appraisal.
1. Minor Bathroom Remodels
Landmark Home Warranty found that small plumbing repairs, such as unclogging drains, fixing leaking faucets, and giving the hardware a makeover can have a 230% to 400% ROI. Further, Inman, a leading news outlet for brokers and realtors, recommends at the very least cleaning the existing grout and re-grouting where needed prior to home sale. Additional recommendations include, caulking, new plumbing and updating light fixtures to add substantial resale value.
2. Minor Kitchen Remodel
In an interview with the Tennessean, Franklin Realtor Leanne Constantine told all home sellers to do minor cosmetic upgrades for faster sales. She further stressed the importance of the kitchen and master bathroom. “An updated kitchen and master bath will sell a house,” said Constantine. “So if you aren’t sure what to update, start in those rooms.”
To give your kitchen an upgrade for less, Inman recommends focusing on cabinets, outdated tile backsplash, appliances, and counters.
3. Curb Appeal and Landscaping
HGTV found that the average return at resale on landscaping is 100%. When updating your landscaping, HGTV recommends consulting a local garden center, which will often provide free design advice.
Other curb appeal updates with high ROI include entry door, siding, and exterior paint.
4. Lighting and Electrical
This is another major pay off at up to 400%, according to Landmark Home Warranty. Projects such as replacing light bulbs, updating outdoor lighting, cleaning the switch plates and light fixtures, and adding dimmers have an ROI ranging from 200-400%. Such a no-brainer!
5. Updating Appliances
HomeLight found that the average ROI on new stainless-steel appliances throughout the house is 141%. Look for ones with the Energy Star symbol, since HomeLight found that 90% of moderate-income home buyers ranked energy saving features as highly desirable or essential.
Keep in mind that ROI varies based on neighborhood comps, size of house, etc. For specific guidance on ROI and upgrades for your rental, check out Opendoor's Home Improvement Value Calculator.
Ready to start your improvements? Learn more about LightStream’s hassle-free process and get your project started. For more resources on updating your rental property, check out our Investor Resources.