Getting the Best Return on Investment With Your Fixer Upper

Now that you have purchased a fixer upper and you're anticipating turning a quick profit, you are likely thinking, “What type of improvements can I make to add significant value to the property?”

You should first take a simple walk-through of what would be defined as a good return on investment. In other words, you will want to make improvements that will add more value than what you paid for the improvement. This is also known as getting the most bang for your buck. An example might be spending $50 on installing new door knobs and increasing the value of the property by at least $200.

Experts will tell you, that to qualify as a good ROI, you will need to get at least $2-3 for every dollar spent. Not all improvements will provide this kind of return.

To get a better idea of the kinds of improvements that will bring you this much of a return for your fixer upper, talk to your real estate agent. More often than not, your agent will tell you that some of the most lucrative improvements are also the ones that are easy and inexpensive to do-like creating a home office.

Because of the Internet and mobile connectivity, more people are working from their own homes than ever before. However, not all homes are suited to have home offices, and what often results is a room full of clutter (or partition of a room) with the fax machine sharing desk space with the good china. Not exactly what you had in mind, is it?

The cost for such a project may not be as high as you might think. All you really need is some creativity and imagination. For under a $1000 you can make a room with its own access area, install some book shelves, create a partition that would serve as a receiving area and install extra power outlets to accommodate office equipment.

The key to this task is to think like someone who works in a home office. Anticipate the needs of the person who will be using it and work them into the room as its key features.

Rest assured your potential buyers will be glad you thought of this and you will find that they will be more than happy to part with at least an extra $5,000 just because of the home office.

And that is only the beginning. You can do similar improvements to other areas of the house, applying the principle of getting the best return for your investment. Finishing a good fixer-upper project is great, but the most satisfaction lies in knowing you spent very little for the amount profit you’ve gained.

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