Affordable Renovations for the Savvy Investor

House flipping requires strategy. Savvy investors know that slapping on a fresh coat of paint and changing a few doorknobs won’t bring about a significant return on their investment. Jason Cohen, founder of the real estate advising group Jason Cohen Pittsburgh, realized this need for investment strategy when he bought his very first property. With the limited funds available to him at the time, Jason couldn’t afford to sink money into unneeded updates; he needed to plan out his renovations and open the property to tenants without going over a set budget. Working on that initial project, Jason Cohen learned that a few carefully chosen renovations could net him a larger return than a few haphazard repairs ever could. Aspiring house-flippers should consider undertaking these worthwhile and inexpensive updates when they purchase a property!

Install new carpet

Stained wall-to-wall carpeting is an instant deterrent for buyers. Throw it out! The flooring below may surprise you; oftentimes, ugly carpets conceal beautiful floors that only need a little wax and polish to shine. If the floor underneath the old covering is unattractive, investors should consider purchasing and installing a new carpet. Either way, buyers will appreciate the clean, fresh appearance imparted by the touched-up flooring.

Replace Bathroom Odds and Ends

Investors don’t need to gut an older bathroom to make it shine. Grouting and caulking, while time-consuming, is an excellent way to return a grungy bathroom to its previously fresh aesthetic. Additionally, minor pieces such as sink faucets, towel bars, vanity surfaces, and medicine cabinets can be replaced at relatively low cost and up the attractiveness of the space.

Paint the walls

Never underestimate the value of a good paint job. A new coat can do wonders for an older space by imparting a sense of freshness to spaces that appear dated or run-down. When painting, investors should opt for a neutral color palette in order to avoid turning away picky buyers.

Consider your landscape

A buyer makes their first conclusions about a property before they ever step foot through the front door. All the time and money an investor spends on a property’s interior may amount to nothing if the shingles on its exterior are shedding or the grass in unkempt. Mind the landscaping! A quick mow of the yard and a bit of garden work doesn’t require much time or money and makes a tremendous difference to buyers.

Mind the budget

In the end, budget takes precedence. While a house flipper may want to completely renovate the kitchen or replace the plumbing in the bathroom, such pricey changes might not always be feasible. Investors should consider repairing rather than replacing, and ditch non-essential renovations if they find themselves spending more money than they anticipated.

As the founding member of the real estate advising group, Jason Cohen Pittsburgh, Jason Cohen is well-versed in advising both professionals and clients in the real estate industry. For more advice and content, please visit Jason’s site at JasonCohenPittsburgh.net.

5 Red Flags Home Buyers Should Take Note Of

As a veteran real estate professional working in Pittsburgh, Jason Cohen well-equipped to assess the risks and potential associated with a property. In this post, Jason Cohen uses his hard-won experience to highlight a few red flags that buyers should make note of when they tour a home.

With their new appliances, sleek countertops, and freshly-painted walls, remodeled houses are meant to impress. For a potential buyer conducting their first walk-through, the surface appeal of a touched-up house can be appealing; however, first-time buyers should avoid making a decision based off of aesthetic appeal. Unfortunately, a number of renovators choose to prioritize cheap cosmetic updates over more vital (and expensive) structural renovations – leaving the unaware buyer with the heavy financial burden of making expensive repairs. Don’t be pulled in by a flashy hack job – watch out for these warning signs when you walk through a home!

Cracks in the Walls

Contrary to what old horror movies might suggest, wall cracks aren’t par for course in old homes. Watch out for splits in brick walls, and makes sure to consult an expert if you think a wall fissure might be more than a cosmetic problem. Don’t take the issue lightly! Wall cracks can indicate severe structural issues and shouldn’t be left unchecked.

Old Roofing

The last thing a buyer wants to do after shelling out tens – or hundreds – of thousands of dollars on a home is sink even more resources into fixing its roof. When built well, roofs remain strong for roughly thirty years. When done incorrectly, they last for considerably less time and can demand as much as $30,000 to repair. Be proactive by enlisting the help of an expert to inspect the roof or asking to see the property’s inspection records.

Fresh Paint in an Old House

A fresh layer of paint usually isn’t something to worry about. However, if it seems as though a house hasn’t been fixed up beside a few patches of paint on the ceiling, beware! Some sellers attempt to cover up termite or water damage by painting over it. Make sure to ask the seller about any suspicious paint jobs before you proceed with the buy.

Water in the Basement

Properly maintained basements aren’t soggy. Moreover, buyers who see water in the basement should worry about more than cleaning on rainy days; according to home inspector William Kibbel, “The wettest crawlspaces (and basements) seem to be directly related to exterior drainage issues. Ground sloping towards the foundation, clogged or missing gutters, and downspouts not properly extended can all contribute to elevated moisture levels and even regular water intrusion.” If you have the funds and time to optimize a home’s exterior drainage problems, you should purchase the house. Otherwise, you may want to let the property go.

Uneven Flooring

Saggy flooring near a home’s bathrooms often indicates greater problems with the property’s plumbing system. Make sure to have an inspector check the plumbing, lest you find yourself with serious issues down the line!

Never, ever be afraid to ask questions. Buyers are entitled to the right to inspect potential purchases and ensure that they really are getting everything they pay for. Take walk-through inspections seriously, and don’t be fooled by a flashy renovation!

*Originally posted on JasonCohenPittsburgh.net