The amount of money and effort you should put into rehabbing and renovating in order to sell fast (flip) and make a profit can sometimes be somewhat of an art. Something you must be careful of when flipping houses is not to overdo the rehabbing. You must find a happy middle ground of fixing up the house so you do not under or over repair the house. Often this boils down to knowing the neighborhood and having the experience of rehabbing to gain a sixth sense about flipping.
Bathroom and kitchen overhauls are a must and should “pop” to become a big selling feature. The bathrooms and kitchens are the two biggest selling features in the house. Redo those areas from top to bottom. Get new appliances. If the kitchen, bathrooms and appliances do not stand out, you may have a deal killer. Hardwood floors are great, but often you can substitute laminate flooring for less money. There are also tiles that look very much like wood that can be used in kitchens and other areas.
Carpeting in bedrooms is fine. I often feel that carpeting in upstairs bedrooms works as noise deadening. It also looks good.
Painting all the rooms is a must and should go without saying. A good neutral color is what I like to see with a bright white trim semi-gloss to give character and contrast.
A new roof must be factored in if needed, but do not spend much on a garage. Other items to look for include the heating and cooling systems. A new furnace or boiler, hot water heater and air conditioning system can be big ticket items. These are great selling features, but if you do not have to replace them don’t.
The exterior of the house is what makes a first impression. Landscaping, a clean looking exterior and a sealed driveway go a long way to adding great value to the property.
Know the neighborhood and rehab accordingly. Don’t be the Ritz in a Motel 6 neighborhood. These concepts hold true for rental property as well. Don’t overdo the repairs and renovations for rentals. It should always be clean, comfortable and meet codes, of course. But you will only get a certain amount of rent in a particular area no matter how glamorous you make an apartment.