A former regional president of Independent Bank in the Dallas, TX, area, Kevin Griffin serves as president of Kevin Griffin Realty, LLC, in McKinney, TX. In this role, he helps clients acquire and improve investment property. Kevin Griffin has supported numerous investors in the process of renovating properties to sell at a profit.
When improving an investment property, the buyer must first calculate the cost of renovations and the expected sale. Often, the investor can look at sales records for similar properties in the area to determine what a likely final sale price will be. The investor can then estimate the difference between the purchase and sale price, compared to the estimated cost of repairs.
For investors seeking to renovate and sell quickly, easy and cost-efficient repairs tend to provide the best value. New flooring and paint, for example, might help the investor turn a better profit than new wiring or mold removal. Similarly, most investors do not want to completely tear down and rebuild a home, in which case it is important to select a property that is structurally sound.
Repair planning should center on buyer appeal as well as the overall condition of the house. Experts recommend focusing on the kitchen and bathroom, as buyers tend to look closely at these areas of the home. Experienced investors design these rooms based on the type of buyers that are likely to be shopping in the home’s specific neighborhood in order to boost the sale price.