7 Rehab Ideas to Add Value to Your Fix-and-Flip

Editors Note: This post was originally published on February 28, 2021, and has been updated to reflect current research and market data, including findings from the NAR's 2025 Remodeling Impact Report and Zonda's 2025 Cost vs Value Report.

Flipping houses isn’t always about making them as beautiful or fashionable as they can possibly be, but instead it could be about making the highest return you can earn on each home.

While your fix-and-flip or bridge loan might cover the rehab costs of a distressed property, financing may not be the same as free. If you're learning how to flip a house, one of the key things you may want to master is how to be efficient with your renovation budget. You may want to focus on the best home improvements to increase value and maximize the properties appeal with strategic upgrades to get the best bang for your buck.

Key Takeaways:

• Focus on high-impact areas. When making renovations, you may consider focusing your efforts where they matter most, like the kitchen, bathrooms, and exterior. These could be the make-or-break areas that buyers focus on. They potentially yield the highest home improvement ROI.
• Match the local market. You may not want to over-improve for your neighborhood or make design choices based on your own personal tastes. Instead, consider researching local comps when making improvements to help ensure you aren't overspending and stick to a neutral "black canvas" aesthetic to attract a wider pool of buyers.
• Exterior first, interior second. A tired looking front yard or dated entry door may discourage buyers before they walk in. Low-cost exterior updates, good landscaping, replaced front door, updated lighting, could create a nice first impression and may deliver better returns than an interior overhaul.

Planning your rehab

If you're planning to renovate a property, you might want to do your homework before you start tearing things apart. One of the first things you may want to do is check out what other properties in the area are going for.

This could give you a solid idea of what buyers may be willing to pay and what kind of return you could expect on your investment. Consider taking a look at property values and recent sale prices of comparable homes in the surrounding neighborhood.

Once you have a sense of what's happening in the local real estate market, it's time to start thinking about the specific property remodeling projects you want to tackle. While general advice could be helpful, some of the best home improvements to increase value may vary by market.

If you're not sure where to start, websites like Zillow and Trulia are great places to find free and easy resources to help you decide which home improvements could have the best resale value in your market. Keep in mind that these websites can only take you so far.

If you want to be sure you're making smart renovation decisions, especially for high-cost upgrades like bathroom renovations, it may be a good idea to team up with a real estate agent who knows your neighborhood well. Typically, they've got an intimate knowledge of the local market, so they might provide you with personalized advice that's tailored to your situation. With their help, you could potentially make the most of your rehab budget.

Where to Start?

To discover the most effective home improvements for increasing a property's value, we consulted with Kiavi's Valuations Department, because they have an unparalleled view of market trends.

Here are seven home improvements that you might consider for boosting your home's value, whether you're taking on a big project or a small one.

1. Update or renovate the kitchen for the best value

It's no surprise that kitchens are a top priority for many real estate investors looking to increase their property’s value. After all, kitchens often hold a special place in people's hearts—there's just something about a cozy kitchen that really speaks to us.

Once hidden from houseguests as a purely functional room, the kitchen has evolved to become a central gathering place. And unlike a living room, which may change little over the decades beyond paint and flooring, kitchens typically wear their age openly.

Full renovation
Does your fixer-upper need a brand-new kitchen from scratch, or can you update the existing bones?

If you go for a full renovation and remove all the existing cabinetry and fixtures, you might want to pause to ask whether the existing floor plan is as modern or efficient as possible. Could there be a better home improvement ROI if you added an island or perhaps rearranged the dishwasher? Could the oven, sink, or refrigerator be more conveniently located?

Before splurging on granite or marble counters, consider quartz or new synthetic stones. These options could be more budget-friendly, hardier, and come in a wider range of colors.

Selective updates
Don’t assume that renovating the kitchen may inherently deliver a high ROI. Sometimes, doing less could deliver more bang for your budget. For example, perhaps the cabinetry and countertops are in good shape, and only the appliances are dated.

Stainless steel remains popular despite several decades of usage— if you want to push the style envelope, consider the new darker stainless steel look.

Energy-efficient appliances may also add more value to your investment property improvement project, but consider doing your own research and look for appliances that have provable claims about their efficiency compared to other models.

If the cabinets look a bit dated but are sound otherwise, a new coat of paint could give the kitchen a fresh feel. Consider swapping in stylish new knobs, handles, and other hardware for an instant cabinet makeover.

2. Focus on bathroom fixtures, finishes, and efficiency

Second to kitchens, bathrooms are the other area where homes may show their age the most, and bathroom renovations often appear on lists of home improvements that add the most value.

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Replacing old sinks and toilets with more water-efficient and space-saving models could provide an open feel. His-and-hers sinks are an especially appealing touch for the master bathroom, and getting rid of linoleum in favor of sharper flooring could do wonders.

If the bathroom has a shower, replacing the tile and/or tub could provide visual appeal to an otherwise boring room.

Selective updates
Wondering how to potentially increase your property value on a budget without doing a complete bathroom remodel? Consider swapping in new fixtures, including faucets, handles, and other sink and shower fixtures. Don’t forget cabinetry hardware, which may be another affordable update that could dramatically improve a bathroom’s look.

Paint could also go a long way and not just on the walls. Could you salvage an ‘80s-inspired bubble-gum pink sink stand by painting it a more timeless white or black? What about the cabinets? Dated-looking fixtures can sometimes be modernized with a simple coat of fresh paint.

When it comes to getting the best ROI with home improvements, you may not need to go all out with a fancy new floor plan or super shiny installations. Savvy real estate investors may know how to increase their ROI with the least intervention possible.

3. Increase home value with new paint and flooring

Sprucing up your home with a fresh coat of paint and some new flooring might seem like basic upgrades, but don't underestimate their power to increase your home's value. Sometimes the simplest improvements could have the biggest impact.

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Many older properties may have a combination of worn-and-torn flooring or carpet. While hardwood may look sharp, it’s far from your only option. Bamboo flooring could create a similar look for a potentially lower price, and a fresh coat of paint for the entire house could give it new life.

Selective updates
If you decide that new flooring is necessary, consider skipping the hardwood or bamboo upstairs in favor of carpeting.

4. Add curb appeal through smart landscaping

First impressions could matter a lot, and investment property improvements that add the most value may not end with the home itself.

Full overhaul
The front of the home may often be the first point of view. Full landscaping, complete with mulched gardens and pristine green lawns, might be money well spent. If the grass is dead, consider re-sodding the yard to add some green.

Selective updates
Potted plants by the front door may go a long way in creating a homey, welcoming vibe. Edging the front walkway might be a small cost that could make a big impact.

Your goal for the front yard differs from your goal for the backyard. The backyard may not need to be perfectly manicured with abundant gardens, but you may want it to be presentable and regularly mowed, while you might consider designing the front yard to attract people to the house.

5. Be strategic with lighting

Some potential buyers may not want to live in a dim, dark cave, but the quantity of light may only the beginning. If you're on a budget but still want to boost your investment properties value, swapping out your lighting fixtures could be one of the most cost-effective ways to do it.

Full renovation
Are the light fixtures outdated? If so, it may be time for new fixtures across the board. Recessed lighting could add a subtle, upscale look and might also work as a nice buzzword when you’re marketing a property for sale.

Dimmer switches are another upscale touch and may cost very little to buy and install. In fact, property investors may be able to install them without the help of a contractor if they’re feeling ambitious.

Selective updates
If you don’t want to mess around with fixtures or install new dimmer switches, consider swapping in new light bulbs, taking care of wattage, and playing with color temperatures. Consider cooler color temperatures for a clean look in the bathroom and warmer color temperatures in the kitchen and living room.

Lastly, think about replacing the light switch covers to add style and flair—just make sure they fit with the home's style and the preferences of the buyer’s market. These small stylistic touches could help you price your flip for top dollar.

6. Energy efficiency helps justify higher prices

Possibly one of the best things about energy-efficient updates, besides being great for the environment, is that you may be able to use real numbers to impress potential buyers. With this, they'll see firsthand just how superior your property may be compared to others on the market.

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If you’re doing a complete renovation, you may start by adding new insulation. According to the U.S. Department of Energy (USDE), the average home leaks energy equivalent to a 2 square foot hole in the wall.

You could also improve energy efficiency by replacing the windows. By switching from single-paned to double-paned windows featuring a low-emissivity (low-E) coating, you could save anywhere from $200 to $600.

Selective updates
Don’t want to shell out potentially tens of thousands of dollars for new windows? You could incorporate technology to create a smart home or start small by installing LED lights. You can tout both their energy efficiency and their longevity to buyers and cite figures detailing how much they could potentially save on their utility bills.

Before writing a check, research rebates and ask around about free energy audits. Tons of government-funded programs are out there to help boost energy efficiency, so be sure to check them out and take advantage of any opportunities that could save you some cash!

7. Add more living space

When you buy a property to flip, an addition may not be the first plan. Even though additions add value by expanding livable space, they may not earn a high, or even positive, return on investment. However, sometimes they could benefit you.

Full renovation
Before you hire an architect to add an extension to your property, consider checking out other nearby homes that have done the same thing. Seeing what has sold in your area could give you a better sense of the cost-to-return ratio, so you can decide whether it's worth it to invest in that extension or not.

It's also important to think about how adding an extension could affect your budget from the get-go. Did you already consider this before you started your home walkthrough, or did the idea pop up later? If you're not careful, you could find yourself stretched financially.

Selective updates
Does more square footage have to be attached to the main building? It may more affordable to add a prefabricated outbuilding to a property. Search online for prefab structures that might make the perfect "carriage house" or "in-law suite."

While far from cheap, adding additional living space, that could be flexibly used to house friends and family, rent on Airbnb, or store belongings, might be one of the best home upgrades you can make.

Before writing a check, speak with your real estate agent to ensure it adds more value than costs.

What home improvements add the most value?

It depends.

Many of the investment property improvements above may work in one market but not in another. Know your market, and when in doubt, consult your real estate agent. Even in markets where many home improvement projects do well, it doesn’t mean you should reflexively make all the improvements for every property you flip.

You might consider forming a budget and try to make it a priority to stick to it. That includes not only the home renovation costs but your timeline as well. The longer you own a property, the greater your soft costs may be and the thinner your profit margins.

If I have a limited budget, which rooms or areas should I try to prioritize?

When you're working on a tight budget, tackling renovations in the wrong order could be more costly than skipping them entirely. You potentially want to do the right home remodeling projects in the right sequence: must-fixes first, then market wants, and lastly, wow factors.

Step 1: The must-fixes (non-negotiables)

Before anything else, health and safety should probably be prioritized. You may want to consider starting with things that could get potentially get flagged during inspection, and that could potentially kill your deal. These include a leaky roof, a failing electrical panel, foundation cracks, broken HVAC, and serious plumbing issues.

Fixing these could be more important than renovating the kitchen. According to the NAR’s 2025 Remodeling Impact Report, 46% of buyers are now less willing to compromise on a home's condition when purchasing. A potential buyer who falls in love with your kitchen may still choose to walk away if your house has serious plumbing problems.

These fixes may help keep your deal alive, so you might want to lock them in before you spend your budget on other cosmetic updates.

Step 2: Research what the market expects

Next, you may want to check what buyers in your market expect at your price range or even pull recently sold comps and look for patterns. Do the recently sold homes nearby have stainless steel appliances? A fenced yard? Granite countertops?

Try your best to match these local comps, not surpass them. If you renovate beyond what your market could support, you may not recoup your renovation expenses. However, not all renovations weigh the same when it comes to ROI potential. According to the NAR's 2025 Remodeling Impact report, a steel front door often recoups 100% of its cost at resale, while a full kitchen remodel only recoups 60%.

On the flip side, Zonda's 2025 Cost vs Value report estimated that a minor kitchen remodel could deliver a 112.9% ROI. This shows that a minor kitchen remodel might be more cost effective than a full kitchen overhaul. The point is, when you’re tackling a house flipping project, you want to be strategic when making renovations.

Step 3: Spend what's left on wow factors

The other ideas in this article, such as the kitchen, bathroom renovations, curb appeal, lighting, fresh paint, and landscaping upgrades, can create an emotional appeal that could push your sales price slightly above competing homes in your market.

The NAR's 2025 Remodeling Impact report report found that kitchen and bathroom remodels topped the list of projects Realtors often recommend to sellers, with 48% of real estate agents reporting increased buyer demand for kitchen upgrades in recent years.

Is there a difference between "marketability" and adding actual monetary value to a home?

Yes. Cosmetic upgrades like repainting kitchen cabinets, swapping hardware, and exterior repainting could make your home more attractive, but may not directly add "monetary" value to your home. An appraiser doesn't necessarily assign them dollar values unless they help your home match up with comps.

However, these fixes could create an emotional appeal, helping potential buyers envision themselves living in your property. A well presented home could potentially pull in more buyers and more offers. And in a competitive market, that could translate to a higher selling price.

Final Thoughts

Experienced house flippers and rental property investors may be able to look at a distressed property and know exactly what updates could deliver the best returns and how much the flip might cost. If you’re flipping homes for the first time, explore hiring an experienced general contractor and oversee the repairs. In addition, consider asking for several quotes and don’t make unnecessary renovations.

Interested in taking on your first flip? Check out what you could qualify for with Kiavi in just a matter of minutes online.

Frequently Asked Questions

What type of renovations increase a home’s value the most?

According to Zonda's 2025 Cost vs Value report, eight of the top ten highest return renovation projects are exterior replacements. A garage door replacement, for example, returns about 267.7% at resale, while a steel front door replacement returns around 216%.

The only interior project in the top five in terms of ROI is a minor kitchen remodel, which could return 112.9% of its cost.

What devalues a house the most?

According to Fannie Mae's property condition guidelines, homes rated C6 (i.e. homes with substantial damage or deferred maintenance posing issues to safety, soundness or structural integrity) are ineligible for sale to Fannie Mae-backed buyers.

That means a faulty roof, outdated electrical panels, or cracked foundation don't just negatively impact your price, but may close your property off to the bulk of financed buyers.

What are the most common renovation mistakes?

Here are the mistakes that may show up most often in house flipping projects:

1. Renovating without checking comps first: Adding a swimming pool might sound nice, but if recently sold homes in your neighborhood do not have this, you may not get your money back at closing.
2. Making upgrades based on personal tastes: Bold colors, luxury finishes, and polarizing styles could repel some of your potential buyers, unless you’re in a high-end market.
3. Over-improving one room while ignoring others: A new, fully-renovated kitchen a couple rooms away from a visibly outdated main bath could make buyers wary, rather than excited.
4. Not paying attention to your timeline: The longer you hold a property, the more holding costs such as interest, taxes, and insurance, may eat into your margins.

How important is the exterior and "curb appeal" compared to all the work I do inside?

Renovating the exterior could be more important than many new flippers expect. According to Zonda's 2025 Cost vs Value report, eight of the top ten highest ROI renovations are exterior projects.

When a potential buyer drives up to your home, the exterior serves as their first filter. A buyer who pulls up and sees a poorly maintained landscaping and peeling exterior paint may not give your renovated kitchen a fair look.