One of the first things that you need to decide when evaluating an investment opportunity is whether you need to replace the roof or not. If you do, it could become one of the most expensive line items in your scope of work. At the same time, it could help you sell your flip faster and for more money. For those planning to keep the property as a part of their real estate investment portfolio, a new roof could help keep your rental in good shape (both internally and externally) for years to come.
Hard Money Blog: Invest, Revitalize, Create, Prosper
If you are investing in the Greater Washington DC area, chances are sooner or later, you will buy a fixer-upper in the planned community. Such homes come with the strings attached; they are members of a Homeowners Association, and you may be obligated to join in. Let’s talk about HOAs and what membership there means for you both as a flipper and a landlord.
Albert Einstein once said: “If you cannot explain it simply, you don’t understand it fully.” This is what I typically think when we get a phone call where a caller wants to know if we are a private lender or a hard money lender. “What’s the difference?” I ask and typically get a rambling explanation that is difficult to follow. It has something to do with institutional money, asset-based lending, credit profile, and what-not and, needless to say, makes no sense whatsoever. So what is the difference between hard money lenders and private lenders? I would argue very little.
Personally, I like modern home design. Still, no one can deny the charming nature of century-old, historic homes in Maryland, Virginia, and Washington, DC. Their character-building historical features help them fetch a nice price on the real estate market. However, real estate investors purchasing a DC-area vintage home should be careful in considering both stylistic options and financial aspects of the transaction.
The bathroom may not be the most glamourous room in the house, but that doesn’t mean that D.C. property rehabbers should ignore this small but important room. Actually, remodeling a bathroom can be an expensive home renovation project. Since the bathroom has so many fixed appliances like the bathtub, shower, sink, and toilet, it can be costly to replace everything. According to HomeAdvisor, the average bathroom remodel costs around $11,183 as of June 2022. That estimate covers a complete tear-out and replacement of fixtures and appliances for an average bathroom. Rehabbers tackling a large master or high-end bathroom in Maryland, Virginia, and Washington D.C. can expect to spend $16,000-$28,000.
Any experienced rehabber understands the awesome power staging the property plays in successful real estate transactions. Potential buyers have a strong emotional reaction to a property that actually looks like a home. An elegant coach, a plush chair, a cozy bed, and a fluffy towel can transfer even the most bare-bone renovation into an upscale vision of what living in this property might feel like. You are no longer selling a property. You are selling the lifestyle. And that lifestyle cannot be defined by appraisal alone.