How to Design Your Fix and Flip for a Higher ROI
Like many individuals starting on their first fix and flip, the design aspect is one that many get carried away on. To some, the design process can be a daunting task, and to others, their excitement carries over into some drastic changes that turn buyers away. Not knowing where to start or feeling overwhelmed by too many material choices can further make these decisions harder to make. In this blog, we’ll tell you the simple moves you can make to increase the ROI on your first fix and flip.
Tip #1: Appeal to the Masses
One key aspect of your fix and flip is deciding the materials for your property. Appealing to the majority of buyers in today’s market will drastically improve traffic and interest and ultimately increase your ROI. The key here is to simplify! Neutral color tones and material selection allow for expression for the home buyers, making it easier for their belongings to fit into the space. The home feels more move-in ready when they can visualize their furniture, décor, and personal items quickly blending into the current space. Keep it minimal and clean. Using the same materials and colors throughout the property can present a high-end design, simply by creating a sense of unity. Don’t cut corners here, care about the final product. Your material choices can be simple yet effective in creating an inviting and eye-catching property.
Tip #2: Focus on Quality
Due to the pandemic, many homeowners and renters realized the importance of their living spaces after being sequestered in their homes for many months. Think about the “Tactile Feeling.” In design, we focus on not only how the space visually looks, but how it feels to touch. Some materials like laminate or vinyl may have a coating that feels “plastic” because of its commercial-grade durability. In today’s market luckily, you can specify a coating that has different tactility such as an acrylic resin that is appealing to touch while also being smudge-resistant. Nothing quite compares to the touch of real stones like soapstone and travertine that feel natural and appeals most to our tactile senses.
Homeowners and renters, especially, will pay more for the quality and longevity of materials chosen for a property. The pandemic made many hyperaware of their space and the importance of where they choose to spend their time. Most flippers opt for cheaper materials and cut corners to try and maximize their profit. By choosing high-quality and durable materials that appeal aesthetically, buyers can justify their purchase for these reasons.
For durability and cost efficiency, look into Engineered Hardwood Flooring. Engineered Hardwood Flooring is a plywood core made of hardwood plies such as walnut, cherry, and oak glued together. A thin layer of hardwood glued on top of the core looks and feels identical to standard hardwood floors. It can be sanded, refinished, and last up to 30 years. Not to mention if your fix or flip is DIY, engineered hardwood is DIY friendly. Engineered wood planks can be interlocking planks or glued, making the installation easier.
In today’s market, it’s very common amongst flippers to use Vinyl flooring, and for good reason. Vinyl is 100% water-resistant and has commercial-grade durability. This makes it the ideal flooring solution as it can be used in rooms exposed to moisture like bathrooms and basements. It’s cost-effective, durable, and comes in many styles. Although it may resemble wood, its pattern repeats and does not feel like wood, which may stray some home buyers. Vinyl requires the subflooring to be perfectly smooth for the installation because it’s relatively soft. Small grains trapped beneath the floor can wear down the planks over time, causing bumps to appear on the surface.
Tip#3: Highlight the Property’s Character
One mistake many people make while flipping a property is undervaluing the character of the home or the neighborhood. Buyers when looking for a home prioritizes location, price, and functionality. The bonus of buying an older home is the special characteristics that come with craftsman style, bungalow, or midcentury-style property. These are huge selling points! Items or spaces special to the style and era in which the home was built should be highlighted. Everyone secretly loves to have something unique they can brag about. Whether that be a wood-burning fireplace, a midcentury split-level home, or arched doorways, highlight these characteristics.
Tip #4: Tenth of a Second
It takes the human mind a tenth of a second to form an impression of a person, book, and in this case curb appeal. First impressions of a home are incredibly important, so when budgeting out for your flip you may want to focus a good amount on the exterior. Landscaping and color choices should tie back to the interior materials chosen. Unify the property inside and outside. You are creating the identity of the property and unifying your decisions in your materials and color choices will create a narrative of quality design work.
On this recent project, to maximize both sunlight and curb appeal we removed trees and shrubs. A new paint job that ties into our neutral color pallet of the interior fosters that unity in the design. Prioritizing the landscaping and curb appeal drastically improved the light allowed into the interior and supports an eye-catching property.
We hope these tips have provided guidance and practical knowledge for your fix and flip property. This may be a daunting task for some, but just remember unity, simplicity, quality, and curb appeal will drastically increase your ROI. For more information take a look at our mentorship program at SUMMIT NOW – Summit Capital Partners (summitcapital-partners.com).
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About Jim Thorpe & Summit Capital Partners
Jim Thorpe is a Seattle-based entrepreneur, , and real estate expert with over 30 years of experience in real estate development. He works to find high-demand properties in low inventory areas for both developers and homeowners alike. One of his specialties is locating single-family homes in property parcels zoned for multi-family development. His rental portfolio now includes houses, apartments, and commercial properties. Thorpe’s dedication to his business has led to city-wide growth and development in the real estate sector.
Summit Capital Partners is a real estate development and management firm that operates out of Puget Sound and is owned by Seattle real estate expert, Jim Thorpe. They work to acquire off-market real estate and specialize in developing risk-adjusted solutions, allowing an assets’ value to increase over 6-12 months. Summit Capital aims to make a difference in the community where they do business.