Upgrades that do not Pay!

This is a great article by Randy. I just wanted to add that finishing off the basement is also a waste of time because it will not return any more value than the cost of construction and sometimes not as much value. Seeing what other homes in the neighborhood have in upgrades is crucial. Don’t put in granite tops if other homes have Formica, or vice versa. The best changes that are cost efficient and increase value are popular updated colors, new carpet and tile or hardwood floors, update plumbing fixtures and stainless steel appliances. Opened floor plans, uncluttered spaces, pleasant neutral colors and updated finishes increase value if you stay in the price range conducive to the neighborhood.

Thanks coaches! It's all making me a better investor!

To add a minor amount, my wife and I use the Keep It Simple System. We have done many houses that have sold super fast, one was in 12 minutes, because we just used pastel colors or neutral tones - people seem to like that over anything I have ever done to rehab or dress up a property to get it to sell. The KISS idea saves you money and time, which is what becomes profit over time

Im really hungry now.

I cannot emphasize enough the value of a new coat of paint, new carpet and flooring. I look at houses all the time where an investor has started a rehab and ran out of money in the middle of the project thus neglecting the paint and carpet. I would strongly urge all investors to ALWAYS calculate in paint and flooring. Rarely will the paint and carpet be in good enough shape to just let it go.

neutral colors for paint and carpet. Bold doesn't fit in with most people looking to buy a house. They can always change the color later, but neutral is best when trying to sell.

The information above is fantastic input in selectively choosing improvements to properties. I agree with the recommendations above. There is one possible exception to the idea of not improving unfinished basements, and that is in a situation where there is a deficiency as compared to most other properties in the area regarding bedrooms or bathrooms. It may be very difficult to sell a 2 bedroom property in a neighborhood that is 3 bedroom dominant. The same is true in a neighborhood that is predominantly 2 bedrooms. If your subject property has less than the average and is the only property that is an exception, it can pay off to put in a bathroom or bedroom in the basement. We are trying to match people's expectations, and the market itself sets those expectations as mentioned above.
Look for opportunities to find the worst property in the market and bring it up to an equivalency with surrounding properties and you will generally be very profitable.

Thanks for sharing Randy, defiantly learned a couple of golden nuggets.

Many people spend a lot of money staging a house. If you are not familiar, this basically means bringing in furniture and decoration to make the house look nicer and more liveable. General indications are that this works. It can help sell the property more rapidly and for more money.
Whether you hire a professional to stage a home, do it yourself, or do no staging, we all know the importance of a first impression. I have some "props" that I keep on hand when I am offering a house for sale--a big red bow for the door that makes the house look like a present, some baskets of silk flowers for color, a few seasonal items for halloween, fourth of july, Christmas, etc.
If you've ever had appointments with people who pulled up in front of the property, paused, and then drove away, you will understand the importance of adding some attractive features to the front of the property. Another suggestion is that if the porch is big enough, put a couple of outdoor chairs there. We want the property to feel inviting, and like something they will want to come and inspect. Even if you do not stage the inside, you may want to do a little staging in front to increase curb appeal.