There are a lot of ways to make money in the real estate market. Buy a distressed property, fix it up and flip it for a profit. Or buy a home in a good neighborhood and you may have a rental property that will bring in income for years into the future.
When you purchase a great deal, the only way to keep it profitable is if you fix it up at a reasonable cost. Which means the fix up process should make it sellable without going overboard.
Value of the property
Every home has a market value, which in turn will dictate the quality of flooring expected by the buyer or renter. While you don’t want to spend an exorbitant amount of money on installing high-end flooring, your goal should still be to impress the home’s decision maker. Buyers know they can repaint easily; flooring is something they will live with for a much longer term.
High-end homes should have equally high-end flooring choices. High-end home buyers want real wood in the main areas, not laminate. For rooms that are carpeted, a luxurious or plush carpet is always better as opposed to a builder’s grade. And for areas like bathrooms and laundry rooms, install a high-end tile or stone rather than laminate or vinyl.
For mid-value homes, choose a durable flooring that can offer a beautiful look and can take more abuse, especially if the home will be rented. Choose harder tiles for entryways, bathrooms and laundry rooms. If you are considering wood, look towards laminates or engineered hardwoods to complete the look. And if you do install carpeting, a builder’s grade may be the way to go, especially in rentals where there’s a chance you’ll be replacing it on a frequent basis.
Function of the room
As you are purchasing flooring for your investment property, keep in mind that less is more. If you can stick with one to three choices of flooring to install throughout the home, not only will you save money by being able to purchase larger quantities, you will also give the home more visual appeal.
Bathrooms, laundry rooms, entryways and kitchens all are high use areas that can take a lot of abuse. Moisture, water, spills and even humidity are all possible, so installing flooring options that can handle these conditions is best. Think tile or vinyl.
For second floor bedrooms, carpeting is always a great choice to reduce noise and provide warmth on those cold, winter mornings.
If wood is at the top of your list for visual appeal, keep in mind that while it can be installed in every room of the home, it will require more maintenance than other flooring choices. While it may be the perfect choice when selling a high-end home, if you will be caring for it as a rental property, you may quickly regret your decision.
Overall, flooring can have the most impact when fixing up a home for resell. Not only can flooring open up a space and give it more pizzazz, it can give you an edge when someone walks in for a tour and instantly says “I’m home”.