We all know the main three ways we can make money in real estateCash flow, mortgage pay downappreciation.That’s the breadbutter of your real estate investing business but there is a fourth way you can make money in real estate.That is through smart
renovations.These strategic renovations can really blow the minds of your tenantsprospective buyers when they come through the property or see the property advertised online.
Solar panel Installation
Solar increases market value for your houseoffsets your electricity billDepending on the region that you’re in, what happens to that electricity once your solar panels produce it depends on the rulesregulations in your areas so do keep that in mindHow much installing solar panels actually reduces your electricity bill will depend on the size of your solar systemthe amount of electricity you consume monthly or annually.
LED lighting Upgrade
Another renovation that’s really cheapreally easy to do is to upgrade to LED lightingIt makes a massive difference in how the space looksIf you have those popcorn ceilingsthose acoustic ceilings, scrape themadd some recessed lightingYou can save on labor if you do it yourselfYou’ll be amazed at how modernclean a room looks just by scraping the ceilingsputting in some recessed lighting up there.
Renovating Your Kitchen
You want to spend the majority of our money in your budget on your kitchen.This is not surprising since that’s the hub of the homeThis is where people spend most of their time so that’s what we really want to make nice.What you want to do is use a light-colored kitchen at least right now that’s kind of what’s happeningYou might want to use white cabinets with a light countertop as well.
Kitchen remodeling has the highest average ROIHowever, you coil;d end up not recouping your investment if you overspend on renovating the kitchen.
Renovating Your Bathroom
People spend a lot of time in the bathroomYou should consider using double sinks you’ve heard of his-and-her sinks, right? That’s what really attracts the buyersthe renters, You also want to make that color palette very lightUse a white hexagon floor with a black groutwhite subway tiles around the tubAnother bathroom renovation idea is using a kind of a cool IKEA floating vanity.
Renovating Your Flooring
Another thing you want to spend your money on is flooringPeople really like seamless floors that go throughoutNot everyone likes it when there’s one type of flooring in the kitchen another type of flooring in the living room another type of flooring in the bedrooms upstairs etc
Having the same flooring throughout the whole house makes it seamlessThe house has flowit seems bigger and brighterThat’s what you want when trying to sell a property or find a tenant you want to make things look bigger,look better than they actually areYou should consider using a light-colored floor.
Renovating the Exterior
The outside looks like crap, you got weeds growing over the window, grass looks terrible etc Why don’t you do something about it? Despite the frequent warning people will always judge a book by its cover.
You really want to just pay attention to the exteriorI You don’t want to spend as much here but pay attention to the curb appealCut the grass at least,take the garbage off the front line.You also want to pull the weeds that are six feet tall.
Increase the Lightthe Space of the House
Dark cramped rooms are no good when it comes to real estateNobody wants to buy or rent a house like thatOne thing you can do to your house to increase the value of your property is to open it up to create more of a flowenhance the natural lightYou can consider knocking down some walls to brighten up the space if you have the ability to do thathave an open floor plan.
More on Home Improvements
Home improvement may include projects that upgrade an existing home interior, roofing, flooring, appliances, or any other such improvements on the houseThe home is enhanced with additional featuresamenities to make the house more user friendly, comfortableattractiveHome improvements do not necessarily entail structural changes, renovationsalterations to a house.
Tax Deductions
Many home improvements are eligible for tax deductions under the tax benefits actUnder the tax benefits act, home improvements made during the year are eligible for tax deductions.
These tax deductions are available to individuals, businessesnonprofitsany organization can avail these tax benefitsIndividuals are eligible for deductions based on the total value of the improvement made during the yearit does not matter whether the improvement was made on your own or on behalf of anyone else.
For individuals, home improvements made during the year for the purpose of earning income are eligible for deductible expensesIn addition to this, if your home is used for business purposes by you or your spouse or any other family member, then you can also claim expenses related to such use of your personal residence.
Similarly, if you or any other member of your family or any other person in your household use any major portion of the house as his or her permanent place of living, then he or she can also claim expenses for rentutilities.
However, if you have to rent out your personal residence, you can deduct expenses for expenses paid for insurance for protecting the houseAs a proof of the above, you will have to provide the IRS with a return, duly signed by you stating the nature of your profession, the number of rooms in your personal residencethe amount of money you earn annually from renting the house.