So you’ve done the research and have decided that you want to buy a foreclosure home to fix up an resell for a profit. Commonly know as “flipping”. So you’ve found a home that you know you can make money on and are planning your project. You ask yourself “How can I maximize this property’s value for the least amount of rehab cost?” According to a recently release report from Remodeling Magazine, you are going to want to focus on the kitchen, bathroom, and exterior.

For a mid price range home the biggest bang for the buck actually came from just a “minor kitchen remodel”. According to their article, replacing the cabinet fronts and drawers with new raised-panel wood doors and new hardware, replacing the laminate counter tops and sinks with a higher grade materials, and a clean fresh look from paint and flooring will add the most value.

For the bathrooms, the biggest value gains were made by replacing all the fixtures including steel tubs. The tubs should be replaced with new ceramic tile shower surround with new single lever temperature controls. The counters and sinks should be replaced with solid-surface vanity counter with integral sink. Adding a recessed medicine cabinet is also desirable. Be sure to upgrade the flooring to ceramic tile and freshen up the paint.

This year’s research also points to an increase in value created by improvements to the exterior and windows. Improvements to consider, include upgrading the the siding to cement board, replacing the front door with a steel door that has windows and replacing the entire garage door system. This years estimated return on investment saw an improvement of 3.5% over last years numbers.

To learn more about this, check out the article at Remodeling Magazine’s website.