Get the most out of your rehab project

Remodeling certain areas of a single-family house is an excellent way for homeowners to add increased functionality and beauty to a property at someone else's expense. By choosing the right project to enhance your living space, a significant portion of the expense can be passed on to future owners in the form of increased property values.
Here are a few tips to consider as you are working on your investment property. Historically, and on average, certain projects, such as the addition of a wood deck, kitchen and bathroom upgrades, and window replacement, have shown the greatest “Return On Investment” regardless of the property's location or the state of the residential property market. However, unless the remodeling project is designed to fix a structural issue or design flaw, it is unlikely that a homeowner will earn back more than the cost of construction.
For investors remodeling a rental property, the cost of enhancing a property can be recovered not only through the sale, but also through the increased rental rates commanded by updated residences.
When contemplating any remodeling project, homeowners should consider the value they will receive from the project over any cost recovery that may be available from sale. However, when contemplating two equally useful changes, homeowners should research local real estate guides to determine which projects are most likely to pay for themselves. Remember that bigger is not always better, and spending more does not always ensure a greater amount of value creation. Home prices will always reflect the tastes of local property buyers and the amounts that buyers are willing to pay in a particular neighborhood or subdivision.