Renovating an Outdated Kitchen

 10 DIY Projects to Flip an Outdated Kitchen

When flipping a house, it's important to focus on the details that matter most. Kitchen updates are among the most common and vital elements of a successful flip. A shabby or garishly outdated kitchen won't fly, but a modernized kitchen design can significantly boost the value of your house flip. Fortunately, you don't always have to go all-out on the kitchen remodel to get the best results.

There are tons of DIY-friendly projects you can use to flip an outdated kitchen into a cozy masterpiece while sticking to your flip renovation budget. Here are ten of the most effective DIY projects to improve the kitchen of any house you flip.

 

1) Replace Small Kitchen Hardware

You don't have to rebuild a kitchen to modernize the hardware. In fact, kitchen hardware is one of the smallest yet most impactful ways to update your flip's kitchen. Choose a new kitchen faucet such as a swan-necked pot filler with an extending hose for washing. Choose a modern style for your faucet and handles. Then update the cabinets with a pack of new drawer-pulls and cabinet handles.   

 

2) Repaint Cabinets and Trim

Paint is one of the most affordable ways to completely transform the kitchen. You can also invest in vibrant (and washable) wallpaper for the parts of the kitchen with exposed drywall. A fresh coat of paint can give the cabinets and trim an entirely new color scheme. You can choose a new primary theme, accent colors, and contrasting colors. 

 

3) Strip and Stain Cabinets Instead

If you have painted cabinets, you can strip the paint and then restore the natural wood hues of the cabinetry. You can oil-polish the wood, or you can stain wood cabinets to any natural shade you desire. Reseal the stained cabinets for a warm, welcoming look. If the cabinets are currently wood, you can stain them a new shade or paint them instead.

 

4) Re-Tile the Backsplash

The backsplash makes a big impact on the appearance of the kitchen. Many types of tile are quite affordable, making a new backsplash a great addition to any budget kitchen renovation.

 

5) Install New Decorative Molding and Cabinet Trim

You can even change the shape and style of the cabinets and kitchen design with the strategic use of molding and trim pieces. Trim pieces can add detail to the cabinets and subtly change their design style. Molding adds subtle elegance to the kitchen near the baseboards and ceiling. Explore shapes and style differences that you might prefer.

 

6) Add LED Strip Lights

Add more light to the kitchen without behind-the-wall installations using LED light strips. Light strips make it possible to light up the counter prep space, and the shelves in the cabinets and pantries by lining shelf edges with stick-on LED lights. Many of these are also smart lights with voice control and multiple color-changing options.

 

7) Place New Shades On Light Fixtures

You can also reinvent the existing light fixtures. Most kitchen lighting can be completely transformed just by changing out which light shade you use. If the fixture is of standard sizes, you can swap out light covers for a completely different style. You can restyle flush lights, pendant lights, and even some chandelier styles.

 

8) Color Stain and Reseal Stone Countertops

Did you know that you can change the color of the countertops? While we don't recommend painting beautiful natural stone, you can color stain granite and other natural stone to give the countertop a whole new look without investing in new stone. Strip the current countertop seal, apply the stain, and then reseal the stone to protect it from moisture and unwanted staining.

 

9) Add Rugs and Placemats

You might be surprised how much the surface-level decor can change the look of the kitchen. For example, a few throw rugs and fatigue mats can make the kitchen more welcoming. The same is true of placing decorative & functional placemats along the breakfast-bar which can make family and guests feel more comfortable hanging out in the kitchen.

 

10) Update the Pantry Organization

Pantry renovations are very popular, but don't have to break the bank. Consider ways you can update the pantry organization without a costly new pantry system. You can install sliding wire drawers, new hanging shelves, and sectional spaces on the own. You can also update the pantry simply by organizing everything into baskets, trays, and matching dry storage canisters.

 

From Flip to Rental with Leaf Management

After all your hard work, you could sell your flipped house quickly on the market. But as the owner,  you could also turn it into a long-term investment as a rental home. If you are eager to jump into your next restoration and renovation project, entrust your finished properties and tenants to experienced property managers as a way to secure onging income from each flip. Leaf Management can help you transform every flip into a profitable rental home. Contact us today ot learn more.

Profits in House Flipping

 What is the Potential for Profit When Flipping Houses?

Flipping houses sounds like a dream job, and you've probably heard stories about making "millions" by renovating and reselling homes. While this might be too good to be true, what's the real deal regarding how much money you can make flipping houses? Good question.

A lot goes into house flipping profitability and how much you'll make with each project. We're here to help you dive into the details, answering the questions on how to accurately estimate your costs and profit margin before you invest in a flip. How much can you make flipping houses? It depends on how good you are at the economic aspect of the game.

 

House Flipping Profit Numbers

When you look up how much you can make from house flipping, a few important numbers rise to the surface. First, you'll see estimates that house flippers can make over $86,000 a year. But it's not exactly a salaried job, so that kind of answer isn't really useful if you're planning to flip houses one project at a time.

You may see that the average house flip earns about $60,000 per property. That's a more useful number, but how is it reached? How do you achieve that goal?

Then there's the 70% rule, which suggests that you never spend more than 70% of the home's after-repair value (ARV) on renovations. That's cool, but how do you know how much you'll spend on renovations?

Let's dive a little deeper into the process of price-planning a flip for profitability.

 

Buy Low, Renovate, Sell High

The core premise behind house flipping is to buy distressed houses at a drastically low price, invest in renovations, and then sell the house for more than the purchase price and renovation costs combined.

To do that, you'll need a smart way to calculate the ARV or after-repair value. Houses that are shabby on the surface can go "shab to fab" with just a little strategic touching-up and a few modernized features. However, houses with foundation problems, structural water damage, and other more serious issues may cost too much to repair for a profitable flip.

Housing market also matters. If you can buy a distressed home for pennies (a few thousand) but a renovated home will benefit from the local housing market pressure, this can skyrocket your profit potential.

 

The 70% Rule in House Flipping

One of the best ways to ensure that you make a profit when house flipping is the 70% rule. Only spend 70% of the house's ARV: its final resale value. That 70% is both your purchase and renovation budget, ensuring that you get somewhere around 30% profits for every house you flip — with a comfortable margin in case of extra expenses.

The 70% rule requires you to know your ARV, purchase cost, and the cost of repairs it will require to get the house selling for top dollar on the local housing market.

 

Calculating the ARV

The after-repair value of a flip is the most important number in your calculations. You need to first have a full understanding of what the house needs to re-enter the housing market.

Identify Distressed Properties

First, look for homes that are selling for less than their real value on the market. These might be homes that have been vacant for a while, inherited homes, forclosed-upon houses, and properties that were recently vandalized.

Not all distressed homes are good flips, but those with "good bones" will offer the best profit potential.

Bring Your Inspector

When estimating whether a house is a good flip, bring the housing inspector. Ask them to help you determine the full scope of repairs that each house requires. Have a good idea of what each type of repair costs and/or have a few contractors on-call to give you a quick stack of estimates.

This will give you a list of repairs and costs for each house. Skip over homes with serious problems and focus on homes that look bad, but would be easy to renovate with surface-level repairs. You may be able to price one or two major investment repairs, if it fits in the 70% ratio.

Price the Home As If It Were Repaired

Consider what the home will look like when it's repaired. Count the square footage, bedrooms, bathrooms, and features that will exist when you're done. Consider the neighborhood, housing market, and demand for homes to buy or rent in the area. Look up the recent selling price of homes that share similar size, features, and location of the house you want to flip.

These estimates will give you a ballpark estimate of the ARV - what the house could sell for when you're done sprucing it up.

 

Subtract the Costs from the Selling Price

Once you have a realistic ARV, you can begin your profitability calculation.

• What percentage of the ARV is the buying price?
• What percentage of the ARV is the renovation cost?
• How much of the ARV is left after purchasing and repair expenses?

The answer to the third question determines your potential for profits. Remember to leave room in your budget so that a few unforeseen costs during the flip don't eat too deeply into your profit margin.

 

The Speed You Can Flip

If you're looking for an annual income number, naturally, this depends both on the efficiency of each property you flip and how fast you can flip a property. Professional house flippers can flip a house every two to six months, but first-timers are more likely to take between one and two years.

The size of the house, the extent of your renovations, and how much you DIY vs hiring contractors (and how fast each of those options might take) will all play a role in determining your flipping pace, and how fast you are making those 30% profits.

When talking averages, if the average flip provides $60,000 in profits and flippers make an average of $86,000 a year, that suggests slightly less than 1.5 flips per year.

 

Long-Term Income Plans from House Flipping

Of course, once you flip a property, there's no rule that you must immediately resell. If you're looking to build a real estate portolio and amass an income from rental properties, flipping can be both a satisfying and profitable approach.

Flipping homes and then renting them can help you maximize your profits-over-time, especially in a high-demand rental market. You can even keep focusing on your flip renovations with the help of a property management company to look after your tenants. Explore the landlord route to flipping profitability with Leaf Management.

How House Flipping Impacts the Housing Market

 

The Impact of House Flipping on the Market

There are not enough homes to go around. The population has been growing faster than the housing market for over a decade, resulting in the housing demand we know today. While this may be great for neighborhood prices, it also means that there are always more families looking for a new home than there are homes available to buy or rent.

Of course, the problem isn't just slow construction planning. It's also that many older homes are removed from the market because the properties are not sufficiently maintained. That is where the noble industry of house flipping finds its niche. What may seem like a profitable home renovation hobby really plays a vital role in the ecosystem of the housing market.

 

House Flipping: Bringing Homes Back To the Market

The best homes for flipping are those that have become too shabby on the surface for safe family life, but only require a bit of "elbow grease" to get them back into clean, safe, and modern condition. These homes need repainting, upgraded appliances, and perhaps a few simple replacements like doors and handrails before they are beautiful, modernized, and ready to welcome a new family in residence.

Each time a house flipper does their thing, a home that would have slipped into decrepitude is instead restored to housing supply and the available market.

 

Why Houses are Lost Without a Flip

There are many circumstances that cause houses to fall below the residential quality level. Often, a home will not be repaired or properly maintained for the last 10 or 20 years that it belongs to a single owner. These homes are inherited, but in a condition that is far from move-in ready with now-ancient appliances and many undtended maintenance problems.

In other situations, a home will experience damage that the owner can't afford to fix. The property is temporarily unlivable, but it's condition gets worse over time, the longer it goes unrepaired.

Home flippers keep an eye out for any house that needs only one major repair or a basic wave of upgrades - and through this route can rescue houses that might otherwise fall permanently out of the loop.

 

Increasing Livable Properties for Local Families

At any given time, the current housing supply is calculated by the number of move-in-ready homes on the market. Homes that are out of commission due to poor maintenance or damage cannot be included in the housing supply. This means they are not available for local families ready to buy or rent a home.

When a house flipper restores a home to the market, they are also increasing the local housing supply. Housing development of new neighborhoods can only go so quickly. The industry of house flipping, on the other hand, can restore many near-lost homes every year with fresh updates and attractive modern remodels.

Families are often delighted to buy or rent a home that has been recently renovated, featuring energy-efficient appliances and welcoming, safe, family-ready updates.

 

Restorations in the Hearts of Cities and Towns

Housing development works by creating ever-more-distant suburbs. More homes are created, but they also come with longer commutes and greater distances from the heart of nearby cities and towns. House flipping, on the other hand, often focuses on properties in high-demand neighborhoods where one home out of a dozen has slipped into disrepair.

These homes provide a shorter commute and closer access to features like shopping centers, entertainment, good schools, and local parks. Flipped homes are an essential part of the housing market, and many are even more modern and attractive than their neighbors who are updating more slowly under long-term owners.

 

Flipping Homes Make Housing Markets Thrive

What is the impact of home flipping on local housing markets? Flipping restores valuable properties back to the market, and increases the housing supply to provide desirable homes for local families. Flipping also rapidly modernizes properties in aging neighborhoods and ensures that restored homes stay on the market for another several decades with a single year (or less) of renovation work.

In other words, house flippers are an essential and beneficial part of the housing market, whether your plan is to quickly resell a property or build your own rental home portfolio of recently restored home.

Explore the potential of house flipping with an experienced property management partner like Leaf Management.