Choosing the wrong materials for your fix and flip could mean the difference between a highly profitable project and total flop - especially when we are talking about flooring. Updated flooring has a great potential to increase your rehab project’s ROI.
However, with that possibility of increasing your ROI, you also run the risk of decreasing your property value if you replace the floors with the wrong product. You don’t want to waste a good chunk of your renovation budget on redoing the floors with the wrong materials that bring your property value down. If your buyers don’t like your choice they will not want to pay your asking price (or buy your property at all) because of the extra work and money it will take to correct your mistake.
You’re in the business of making money from your real estate investments. We want to help you make the most of your rehab budget. Here are some ideas for making savvy decisions for your rehab property’s floors using great-looking, inexpensive materials.
Hardwood flooring for your fix and flip
The best flooring for any residential property is hardwood flooring. Hardwoods can not only stand the test of time for durability, but they continue to increase in popularity and give your property a classic and modern look. This shared combination contributes to higher resale values for your fix and flip. Always keep in mind that if all else fails, choosing hardwoods is your best bet. They’re universally preferred and are here to stay.
According to Realtor.com, you can expect new hardwood floors to increase your sales price up to 2.5 percent! Granted, this is all dependent on your location, buyer expectations, square footage and layout.
However, the price of installing quality hardwood floors in your rehab property might outweigh the ROI for your neighborhood or target demographic for buyers. If this is the case, we have some great ideas for alternatives.
Hardwood flooring alternatives for your fix and flip
If hardwoods aren’t in your renovation budget or the ROI won’t offset the cost, there are great alternatives to real wood like manufactured wood or imitation stone tiles.
Engineered wood flooring is arguably the best alternative to real hardwood. They are great for almost any home, from high-end to lower price points. You can find them in many different colors, styles and textures to mimic the charm and character of real hardwoods AND they are easier to install. If you are worried about that hollow sound some floating floors make when you walk across them, quality flooring companies have figured this out! You can even test different padding or subfloor options. Your potential buyers will barely be able to tell you didn’t use real wood.
When it comes to hardwood alternatives, consider tile for bathrooms and kitchens. Tile is a great option for rooms where moisture and messes are a concern for buyers. We aren’t talking about square white tiles, we mean longer sophisticated tiles or tiles that are made to resemble hardwood floors. While they may look similar, tile flooring will have a higher performance in these high-traffic and accident-prone rooms. This can be a big selling point for your listing for active families or buyers with pets. Think about what buyers will be attracted to your neighborhood. Do they need scratch-proof, dent-proof, water damage-proof flooring? Go with tile.
LAMINATE VS VINYL
Looking to shave even more off your flooring cost? Let’s look at the benefits of laminate and vinyl. Keep in mind, these options are not ideal for a high-end renovation project, but a good consideration for first-time homebuyer properties or low-cost fix and flip projects.
Vinyl has come a long way since the days of the oh so prominent peel-and-stick “tiles.” Now, high-quality laminate, luxury vinyl flooring (LVF) and vinyl composition tile (VCT) can stand up to home-buyers’ standards in certain price points.
How to Find Great Prices on Your Fix and Flip’s Flooring
Tip 1: Avoid buying small quantities at retail because you will end up paying a premium. Scout out competitive prices and specials at big box stores like Costco. (Yes, Costco sells wood and laminate flooring.)
Tip 2: Buy in bulk. Are you flipping multiple properties at once or plan to flip multiple properties in a short period of time? Buying for multiple projects can help you get your cost down and minimize your turnover time from one project to the next.
Tip 3: Look for remnant sales. You may be able to find a great deal in your area for overstock or slightly damaged flooring materials. These products are always highly discounted because the packaging may have been damaged in transport or have a small defect, but are still acceptable to install and verified for its core material, overall construction, pattern and color variance, interlocking system and the wear layer. Make sure you check the warranty information from these sales.
Tip 4: Wherever you buy your flooring from will have suggestions and referrals teed up for installation services. If you aren’t doing it yourself, get multiple quotes and do your best to avoid paying a commission fee to the vendor.
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