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.
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.
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