House flipping is definitely a profitable venture in Sacramento, California. Buy a house that needs a little fixer upper handiwork and you can resell it for lucrative cash. Many of our regular customers do just that. They invest in real estate that needs a little help, fix it up, and then resell at a pretty profit.
But here’s the thing: Like any other business, you need to be careful with what you invest, and weigh cost versus benefit. And when it comes to getting the most out of your house flipping investment dollars, it pays to focus on the outside of the house. Think curb appeal. Without a beautifully-facing street front, that house won’t sell for much.
When flipping houses, people immediately think: kitchen and bathrooms. And you’re not wrong; those are definitely the most important rooms when it comes to the interior of the house. However, people do judge books by their covers, and the way a house looks can have a huge impact on whether or not those new marble kitchen countertops pay you back when you sell the home.
Outdoor is Just as Important as In When it Comes to Flipping
When it comes to home renovation, work done on the outside of a home has a higher ROI than interior improvements. Projects with the highest year-over-year increase in value are upgrades that can be seen from the street, According to REMODEL MAGAZINE’s 2023 Cost/Value Report, in our region, 5 of the 6 highest ROI home renovations have to do with curb appeal.
Here are 3 projects we’d suggest to increase curb appeal and boost the equity of your home:
1. Install a New Garage Door (97% ROI)
Installing a new garage door on a home has one of the highest returns on investments of all home improvements, 97% — virtually dollar for dollar. The reason is because of the impact a new door has on curb appeal.
The quality of a door is key. A beautiful door might perk interest, but a quality door is essential to landing a sale. It should be of a high quality material like wood or quality aluminum, galvanized steel, or fiberglass, and it should be insulated. Even in a warmer climate like Sacramento, California, an insulated door is important to controlling energy costs. It keeps the hot air out, so you spend less electricity on air conditioning.
2. Invest in a Security Gate (89% ROI)
If you live in Sacramento, California, then you understand the importance of a security gate. Installing a security gate on your property means car thieves will give your house a pass and continue with their neighborhood shakedown. Make crime a hassle for the criminal, and they’ll leave you alone.
Well-designed and visually eye catching gates can also increase curb appeal to a property. Potential homebuyers see the property as higher class and understand the value a gate brings in safeguarding their property and privacy. Adding a gate can substantially increase the property value of your home.
3. Reside the House (98% ROI)
It’s amazing how much life and freshness new vinyl siding can bring to a home. Be creative with the colors. Choose a color scheme that celebrates the vibrancy of California. Another option for residing the house is cement or stone façade, which are also up there on the ROI list. Fiber-cement siding boasts an 87% return, and manufactured stone veneer 85%.
Whenever you’re flipping a house, though, you can’t get ahead of yourself. These returns are accurate if you manage the project correctly. For instance, you can’t just install at $10,000 carriage house-style sliding gate in a mid-range community and expect it to be reflected in home value. It always helps to get advice from the professionals, especially when it comes to major renos that affect how a house looks and how secure it is. Call SACS anytime for a consult on your house flip so you can ensure it doesn’t end up a flop.