Understanding how cosmetic flaws affect a property’s income potential.
Before you invest in a property, it’s important to know which cosmetic items to prioritize. As an investor, I’m often willing to overlook minor cosmetic issues since they can lead to better deals without significant expenses or the need for immediate upgrades. However, you need to know what to fix to get a good return. That’s why I’m explaining how three common cosmetic issues affect your investment and how to navigate them:
1. Paint colors. While paint colors might be a concern for first-time homebuyers, tenants typically do not pay more or less based on this. This means that paint is not a crucial factor when evaluating a property’s investment potential.
2. Kitchen. The kitchen’s condition is a major selling point for homebuyers, but for tenants, functionality is key. A property with a fully functional kitchen can often be purchased at a better value. An enclosed kitchen, on the other hand, may be less appealing to high-end buyers, but can still attract tenants without affecting the rental price.
3. Flooring. Flooring in a rental property should be durable but doesn’t need to be the latest style or the most attractive. If you can purchase a home for a lower price and still charge the same rent as a more modern property with an open floor plan, it’s an indicator of a good investment opportunity.
Remember, understanding which cosmetic details are important to tenants versus homebuyers can help you make more informed investment decisions and maximize your returns.
If you have any questions about real estate investing, call me at 580-845-0048 or email rob.eliteresultsrealty@gmail.com. I look forward to hearing from you!
