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Step 1
Use your investment property to finance upgrades. You may be able to get a cash-out refinance on your mortgage. Another option would be to use a hard money lender or a lender willing to finance the house at its after repaired value. You could also consider a home equity loan or line of credit.
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Step 2
Upgrade the kitchen. The kitchen provides a good return for the money you invest in upgrades. If the kitchen is small, consider knocking out part or all of a wall and moving cabinets to expand the space. Modern appliances are more energy efficient and more esthetically pleasing. To save money, consider refinishing or painting current cabinets. If possible, upgrade the countertops and be sure to install a microwave.
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Step 3
Redo the bathrooms, the second most important area to upgrade. If your investment property only has one bathroom, you need to try to add at least a half bathroom. Pedestal sinks save space and make small rooms feel larger. If you want to save money, upgrade just the faucets and handles on the tub, shower and sink.
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Step 4
Install new flooring. Investment properties that incorporate hardwood flooring, tile or other stones have more value than properties with carpet only. Upgrading old carpet with new carpet can increase your value.
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Step 5
Give your investment property a modern feel. Scrape popcorn off the ceilings and upgrade the lighting fixtures. Pick neural paint colors for the inside and outside of the property and apply.
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Step 6
Remember to update curb appeal and outdoor living space. If the outside of your investment property is ill-maintained or overgrown, people won't be interested in seeing the inside. In areas with a mild climate, people want to be able to entertain and enjoy being outside. A concrete patio offers a place to grill and have patio furniture.
