When you take out a hard money loan to buy an investment property, some experienced professionals will tell you that you need to choose the right improvements.
However, that seems a little bit backward.
You shouldn’t buy a property unless you already know what improvements need to be made – and whether you can reasonably make them quickly and effectively enough to turn a profit on the sale.
Choosing the Right Improvements for a Property
It’s important that you’re already aware of what improvements you could make to increase a home’s value when you buy a property – but what improvements are likely to raise a home’s value, and which typically fall flat?
Improvements that often raise a property’s value can include:
- Increasing space by removing non-structural walls. This can help make the house appear larger and give it a more open floor plan, which is important to a lot of buyers.
- Adding lighting. One of the most popular ways to increase a home’s appeal is to add new windows, sunscoops and lighting systems.
- Eco-friendly upgrades. This can include anything from solar panels to energy-efficient appliances.
- Whether you choose to add tile, hardwood or new carpet, an improvement on the floors can equate to an improvement in value.
Other common upgrades include improving kitchens and bathrooms – but you always have to be careful about over-improving… especially if you’re improving too much for the neighborhood.
Improvements that may not add value can include:
- Swimming pools
- Extensive landscaping
- High-end upgrades (especially if you’re going too high-end)
- Wall-to-wall carpeting
Are You Investing in Property in Atlanta?
If you need a hard money loan to fix and flip a property in Atlanta or its suburbs, we can help.