House flipping done well can be a profitable enterprise for real estate investors, but the process is not without its risks or potential pitfalls. House flipping shows on TV are entertaining, but the reality is that it takes years to learn the business of house flipping, inside and out.
One essential house-flipping skill acquired over time is knowing which projects or renovations will provide the best return on investment (ROI) and help that house sell quickly once it goes on the market.
Summer is an ideal time for house flippers to tackle a wide range of strategic, high-ROI projects without the constraints of colder weather. Below are some of the best summer projects for house flippers that typically increase a home’s market value.
Some buyers won’t bother seeing a home’s interior if the exterior isn’t appealing, so it pays to give careful attention to how your property looks from the outside.
Start with landscaping, which can potentially increase a property’s value by 28%, but is often one of the least expensive projects to tackle. Landscaping doesn’t have to be elaborate and can consist of a well-kept lawn, simple flower beds with mulch, and healthy shrubbery.
Summer is a good time to power wash the outside of the home, as well as stained walkways and patios, to remove layers of dirt or algae on siding and concrete. Replace an outdated front door, particularly if wooden parts are warped or damaged. If the door is in good shape, consider painting it a fresh color. Now is a good time to replace outdated exterior lights as well.
Look up, and take note of your gutters. Clean out debris, and repair or replace any gutters that sag or seem broken. Newer gutters not only perform the important job of diverting water away from your house but also provide a way to update your home’s look.
Worn or damaged siding doesn't just make your house look dated; it leaves the home vulnerable to moisture that can weaken its structure.
Modern vinyl siding is affordable, durable, and comes in an array of colors and styles, making it one of the most popular choices for home covering in the U.S.
Fiber cement siding is another option, and though pricier than vinyl, fiber cement typically has a lifespan of 50 years. Alternatively, stone veneer is a composite material made to look like stone, and it can last up to 75 years.
According to a 2023 remodeling report, a homeowner stands to recoup 95% of the cost when replacing vinyl siding, 89% if using fiber cement, and a whopping 102% ROI for updating with stone veneer. Once you've decided on a type of siding, find a trusted professional who can ensure the vinyl is measured, cut, and installed properly.
The average lifespan of an asphalt driveway is three to 10 years. But that can vary significantly if you've recently moved to a new climate. Areas with harsh winters that see a lot of snow or ice can expect more wear and tear and might require homeowners to reseal their driveways more frequently. The same goes for particularly hot, humid climates.
The driveway needs to be properly prepped before a seal coat is applied, which means cleaning oil stains, removing loose gravel, and filling holes. Bring in professionals if this project is out of your DIY depth, as they’ll have the tools and skills to handle what could turn into a messy job.
The finished product will be well worth the investment. For a home flipper, a pristine driveway free of cracks and potholes adds to that great first impression you’re looking to make on potential homebuyers.
Many homeowners are looking to their yards as a way to increase the amount of square footage available for living and entertaining. And for homeowners in cold-weather climates, maximizing the enjoyability of warm summer months is a must.
For a house flipper, adding a wooden deck can greatly increase a home’s appeal and provide as much as 90% ROI, depending on materials and the size of the deck.
You might also consider adding a patio for grilling and dining or a screened porch for additional entertaining.
Real estate agents will tell you that many young homebuyers put “sustainability” at the top of their lists when shopping for a new home. Energy-saving upgrades have the potential to pay off big with a nominal investment upfront. Replacing old light bulbs with energy-efficient LEDs is an obvious choice, but also consider:
Replacing windows in the summertime is always preferable to doing it in the dead of winter. Not to mention, window replacements can provide up to a 69% ROI.
Homeowners will save on heating and cooling costs in the long run when old, drafty, or damaged single-pane windows are replaced with energy-efficient dual panes. New windows will not only help keep the home warm in the winter and cool in the summer, but dual panes also help to cut down on street noise and add to your home’s overall curb appeal.
Profitability is always the bottom line for house flippers. Experienced investors know how to strategically choose renovations that will return the most on their investment based on the home, neighborhood, and market conditions. If you're planning to buy and sell homes this year, be sure to make the most of those valuable summer months.