172. Increasing the Home Value

Bob knew that the house he just purchased in a historically rough neighborhood. There was a of gang violence, including shootings, in the neighborhood. is probably why the house was so inexpensive. previous owners of the house had it foreclosed. some house flippers bought the property for a cheap price, renovated it, raised the sales price, sold it. Bob thought the house was still good bargain though.

After he moved in, Bob to see that many of the renovations to home were merely cosmetic. While the house flippers in new stainless steel appliances in the kitchen, hadn't upgraded the electrical work. This meant that time Bob ran the dishwasher and the coffee , all the power in the house went out. spent over $1,000 dollars to have the house . The new carpets that the house flippers installed put over the original hardwood floors. Bob decided rip out the ugly oatmeal colored carpets and the old floors. That was another $3,000.

The was an old stucco house that got very in the summer and cold in the winter. house flippers installed some cheap windows. Bob hired contractor to put in new double pane storm and install ceiling fans. That was another few dollars. Bob wanted to make the house energy , so he leased solar panels that were installed the roof. This not only lowered his monthly bill, but added value to the home.

Within years, all the changes Bob made to the totaled more than $20,000. In that time the of his home rose almost $100,000. Bob felt made a good investment. He knew when he the home, he would get more money than paid.





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