There are a number of reasons why a real estate investor wouldn’t want to do a full rehab on a property. Full rehabs involve more money, more time, more labor, and more risk. Many times a light or minor rehab is enough to sell to a retail buyer, given that all of the mechanicals are working properly.
Small changes that aren’t costly can make a drastic difference in a property. Depending on the condition you receive it in, you might need to clean it out before doing any actual rehab but giving the property a good clean is a huge step in making it sellable on the retail market.
By spending a few thousand dollars on a light rehab, you can sometimes get 2-3 times the amount you spent in profit. Rehab areas that are easily noticeable and stand out to the buyer.
Adding a neutral coat of paint to the walls and new flooring can bring a darker, dated property up to date and it won’t break the bank. A seller doesn’t want to see stains on the floor and freshening up the looking will make the property more inviting.
Depending on the age of the property, the light fixtures and bathroom fixtures are probably a dead give away in how old it is. They’re not too costly and can brighten up a home. Remember to stick with neutral options that are going to appeal to the widest audience.
Changing out any cabinet knobs are cheap to switch out and can easily transform the look of a cabinet. Light switch plates and outlet covers are another super cheap fix but can make a huge difference since most you’ll find are a discolored beige and aren’t appealing to the eye.
Lastly, simply clean up the landscaping and if it isn’t summer, water the grass regularly. You don’t need to add any extravagant plants or bushes but some new mulch and a green yard will provide a better first impression when a seller first sees the property.
Also check out: Adding Value to Your Rental Properties
None of the above repairs or upgrades are too costly or too time consuming but they add value to a property that most likely wasn’t even able to go on the MLS before. Freshening up the property allows for a wider net of buyers and a higher profit margin.