Price
Yes this seems obvious, but I’m not talking about getting the best deal on a property, which is important, I’m talking about picking a price point to buy in. Most of the flips and holds that my clients and I purchase are in the $150k to $350k price range. The reason being that we get the most return for the amount of time and effort we’ve put into the project. Sure you can buy a $50k house somewhere in DFW and flip it, or turn it into a rental property, but you’ll be putting more effort for less return. Typically, the neighborhoods you find an inexpensive house in have higher crime rates and are generally not well kept, both of which leads to less potential buyers and higher days on market. $150k to $200k is what most investors call the “bread and butter” flips/holds.
Schools
It’s very important the home you’re buying is by good schools, public or private. There are more buyers looking in good school districts than there are in the not so good school districts. More buyers means higher sales prices, faster appreciation, lower days on market, and ultimately higher return on your investment. Take just a couple minutes, go to greatschools.org, plug in your zip code, and make sure that the schools that the home feeds into have a score of 6 or higher. The rating system is built on a 0 to 10 system where 0 is way below average, 5 is average, and 10 is way above average.
Floor Plan
Buyers will not buy a house, no matter how many upgrades you have you put into it if the floor plan sucks. Sometimes you can open up the house by knocking out walls, but if you can’t, walk away. Buyers need to be able to imagine living there and unusual floor plans will throw a brick wall in front of their vision of hosting parties and raising a family. Always ask yourself, “Would I live here? If not, what would I have to do to make this house work?” Things that fall into the floor plan are:
Is the washer and dryer inside the house? Buyers don’t like going into the garage to do the laundry. Is there space for a formal dining area? It can be the only dining space, but it needs to be adequate for entertaining. Is the master bath and master closet large? Buyers will walk 90% of the time over a small master bath and/or small closet. Is the kitchen large and open to the main living area? Today, buyers are looking to be able to keep a close eye on their kids when cooking, or they want to be able to entertain while cooking, both require the open kitchen concept.
I’ve had the most success with ranch style homes with high (9ft or higher) ceilings. They have plenty of space, all of the right rooms, and with the removal of a few walls you will have that open concept that buyers are looking for.
More floor plan resources:
http://www.designevolutions.com/articles/common-home-design-mistakes.html#.VGKVSVPF-YA
Curb Appeal
Does the house look “blah” on the outside?
Maybe it was the color of the brick, lack of landscaping, or the front door is on the side of the house, whatever it is, you need to be able to fix it, otherwise, walk away. Psychologically, most people like to conform. To play it safe, follow the trends of the neighborhood and PLEASE invest some money into landscaping. If you want to add some flair (cedar beams, shutters, etc.) as long as the updates look fashionable, go for it! Consult with a designer if you’re not sure which direction you’d like to go with the exterior or interior remodel. I’ve been very happy with Sherry Mahr, she’s done design consulting on many of my projects prior to remodeling. Her email is sherrymahr@hotmail.com.
I can help you out!
If you’d like my input on your project, I’d love to help you in any way that I can. If you’re looking to buy or sell a home, I’m happy to help you with that as well 🙂 My email is BrandtBarham@gmail.com and cell phone is 469.531.4131. Let’s rock your next project together!