If I were to invest in a property, what would be some things that I could do to raise the value more than I have to spend on the improvement?
For example:
Getting a roof replaced - $3,000
Raise the Appraised Value +$4,000
To some degree you’re asking the wrong question. In my opinion, the question should be, “How do I get better profits out of my real estate investments?” My answer to that is to make sure you buy at a steep discount to market value. In my area, steep discounts are few and far between and I seem to get them only by buying distressed properties directly from owners. I add value by then bringing them up to just slightly better than the neighborhood standards and doing much of the work myself.
At least in my case, the adage that “You make your money when you buy” holds true.
Types of improvements I have done that seem to add the most value: total kitchen rehab with 36" cabinets and trim over and under the cabinets with contracting color trim. I use granite countertops if I’m flipping or laminates if I’m holding/renting. Hardwood floors bought at closeout and used stainless appliances add value/desireability and don’t add much cost.
Put in all tile baths, plus I usually drop the ceiling over the tub/shower by 6" and tile the dropped ceiling. Cabinet quality vanities also add marketability/shorten the time to sell/rent but not necessarily add value.
Also, attend to the DETAILS. Plant grass, trim and edge the lawn, trim trees, plant bushes and LOTS of colorful flowers: anything to add curb appeal. Paint almost ANYTHING that was previously painted but not replaced including basement floors and stairs.
Make the property look BRAND NEW from top to bottom.
jmd_forest