What’s made of concrete, can be installed in a weekend, and has up to a 60-percent return on investment as soon as the concrete solidifies? All you “Weekend Warrior” investors, you are not going to want to miss the details on this fast, easy home addition that comes with a nearly instant 60-percent ROI. I’m Carole Ellis. This is Episode 22.
So how does a little concrete and less than two days of work translate to up to 60 percent ROI? I’ll tell you in just a minute! Before we get there, though, I want to let you in on a “hot” little item you can find in our news & networking section at www.rei.today. There are certain housing markets that are absolutely IDEAL for a certain type of real estate investment: cash-flowing rental properties. Investors love these properties because most feel like they are “money in the bank” with any appreciation as the “cherry on top.” If you like buying in hot rental markets, then you’re going to want to review our “HOT RENTAL MARKET Projections for 2016” in the News & networking Section at www.rei.today.
Now, let’s get back to a little weekend-warrioring that can lead to that tantalizing 60 percent ROI. So here’s the deal:
More than ever, Americans are demanding useful, easy-to-identify outdoor living space in their homes. When it’s spring, the demand is particularly high because the weather is getting pleasant, but this is a year-round phenomenon. It’s great for real estate investors as well, because you can make an average property really stand out with the addition – or even just staging – of outdoor space in a way that demonstrates that there are great outdoor living options in that property.
However, if you really want to go the extra mile (okay, it’s more like an extra couple hundred square feet, and remember, I told you it’s going to take basically no time at all), then you can add a patio or deck. Now, adding a deck is complicated. There are safety issues. There are construction factors. You may not have the personal skills or the time to add a safe, attractive structure like a deck to your home. However, a patio is a very, very different story.
Let me give you a few fantastic patio facts that are going to have you at your local DIY store buying pavers, sand, and cement.
First things first: The Money. According to Inman News, patio additions have a 30 to 60 percent ROI on them basically from the second the concrete sets. This is great news, because patios do not have to be expensive to be attractive and effective for what they’re intended to do: create a pleasant, defined outdoor living space. And second, homebuyers LOVE them. More than half of all new homes come with a patio because that is what the buyers WANT! So if you’re investing in an existing property without one, seriously consider this addition.
Next, and this is still related to money, a patio does not have to be that expensive. You can have a nice concrete slab patio (probably the most basic option) poured for five- or six-hundred dollars in most areas. Of course, the more you add to that patio (say a fire pit, which will be another roughly $600 if you pay a professional to do it), the more expensive it gets. A lot of savvy investors actually pour the concrete slab to keep costs down instead of installing pavers, for which the cost can get up toward two- or three-thousand very quickly, and then STAIN the concrete or stamp it to make the patio look like natural stone, wood, or even marble. Pretty cool, huh?
Finally, not only are patios a hot item, they’re also a fast fix. You could absolutely install a basic patio in a weekend, so they won’t add a lot to your deal’s timeline. And here’s a very interesting note from the president of the Appraisal Institute, who actually has a documented opinion on patios, which kind of just shows you what a big deal to buyers they are these days. The Appraisal Institute president, Leslie Sellers, said that the biggest ROI on patios comes from installations that appear to “have been in place since the home was built.” Essentially, she said, this means not that you need to weather it, but that you need to keep your patio installation in check so that it “goes with the property.” A modest property should have a nice but modest patio, a higher-end property might need a larger patio with a few amenities like a fire pit or outdoor bar area. Over-investing in an opulent patio that doesn’t fit the property can erode or even eliminate your ROI fast.
Now, if you want more details on how to make your patio pop, head on over the REI Today Vault at www.rei.today/vault and check out our exclusive report on outdoor living. Whether you are staging a patio, installing one, or just looking to make the most of the existing outdoor space in your investment property for the least amount of investment dollars, our 2016 Outdoor Living Report has the answers you need. Not yet a member? Text REITODAY no spaces, no period to 33444 and I’ll provide you with fast, immediate access to this timely information.
And remember, when you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 or head over to www.rei.today/vault right now.
REI Nation, if you’ve got patio installation on the brain, then odds are you could be making a trip to local big-box store soon for supplies. When you do, did you know that the store you go to could contain some VERY VALUABLE INFORMATION about how real estate prices are going to change in your area this year? Wondering what the local DIY store has to do with YOUR HOME VALUE? A lot more than you think, and not just in terms of your home improvements. Get all the details in the next episode and, until then REI Nation, always remember this: Your Best Investment is Your Own Education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.