Having an investment property can be a great addition to any retirement portfolio. With a real estate IRA or any real estate for that matter there are some things that you can do to get to keep the value of your home as high as possible. You may have thought that keeping up with the Jones' was just a waist of money but you may actually could be hurting the value of your home if you aren't staying up to speed with your neighbors. Yes you can go overboard and you may not be able to recoup the upgrades in the sale of your investment property.
You don't have to break the bank or spend ridiculous amounts of money in order to make your investment property more attractive when you are getting ready to sell it.
Depending on the age of your investment property these fairly simple upgrades can cost less than $5,000.00. The following tips come from an article by CNN Money. Check it out for the whole story.
Open The Kitchen
Kitchens serve a different purpose today than they did in the past. The past said that the kitchen was solely for cooking. Today the kitchen serves a much bigger role. It is a favorite spot for families and their guests to congregate. Many older homes have kitchens that are just too small and cramped. Many times kitchens have a dinning room next to them that is separated by a wall. Removing the wall between the dining room or other living area is the best way to open up the space. As long as pipes and structural support doesn't change you are likely to pay lower than $5,000.00. If budget calls for it sprucing up the countertops and appliances can be a great selling point.
Put The Laundry Close to Bedrooms and Bathrooms
Today buyers aren't keen on the idea of having their laundry room stashed away in the basement. Having a washer and dryer on the floor closest to the bedrooms and bathrooms is gaining in popularity. The best way to accomplish this is if you have a big enough unused closet in a hall near your bedrooms. If that doesn't work then do you have an unused bedroom? If so, you can remodel that bedroom to create a half laundry and half walk-in closet. Look at your options because finding a way to make this work can potentially be a great addition that will pay when you sale your property.
Upgrade Your Closets
If your home is older than 30 years older you more than likely have a big frustrating problem, no storage space. Typically closets are small with only one rod to hold clothes. The truth is, new buyers want bigger closets with more storage options. There are plenty of ways you can get more storage into a home. My thought is if you can upgrade your room closets then go for it. Second look to add closets to bathrooms or other areas that could really use the storage. You can't really ever have too much storage possibilities.
One great thing to do when thinking about upgrading any of these suggestions is to look at the homes around your investment property. It can be hard at times but you need to look at your investment property as non biased as possible. It can be even harder if you have any sentimental feelings in your investment property. Looking at the other homes around your investment property is a great idea because you can see if your home is staying up with the times. Does your home have the same, less or more storage? Is the kitchen more open than most of the homes in your area or is it more cramped? Once you have figured out these type of questions you will know where to spend more of your budget and where to hold off. The last thing that you will want to do is upgrade something that is typically much better than the other homes in your area. Those types of upgrades won't pay off as much because you are already above the competition. Focus on the things that will make your home at least as good as the competition.
There are so many different things you can do to get the most out of your real estate IRA investment. Getting as much information and staying up on the trends can be a big help to make sure your real estate IRA investment is worth as much as possible.
If you need more information as to how to invest in real estate with your IRA or just need help setting up a real estate IRA contact us. We are here to help you invest in the things you want with your IRA.
Author: Nick Barker