For real estate investors, diversifying your streams of income through the acquisition of multiple properties is key to building real wealth. On the other side of that coin, however, buying more properties means fielding more expenses.

In part one of our interview with Mark Anderson, executive and head of renovations for Memphis Invest in Tennessee, as well as Dave Smith, head of renovations for Memphis Invest in Texas, we dove in depth about the day-to-day operations of the renovations team, how we distinguish ourselves from other investment companies in the renovations process, and our “WOW” relationship with our vendors.

No one likes to feel cramped in their home, and the same is true of tenants when it comes to their rentals. As an owner and investor, one of the best things you can do for your rental properties is to get into the mind of the tenant—see what they value, learn what they love, and tailor your properties after their needs.

One would think that with the relatively sluggish recovery of the real estate market in many parts of the country, with both home buying and home building on the low side overall, home improvement would be similarly stunted.

And yet, that’s not the case — a study by the Joint Center for Housing Studies at Harvard, property renovations are booming with nearly $300 billion in sales. It could be the highest spending this year since 2007. That’s good news!

Spring is here! Things are warming up around the country little by little, and that means investors should be turning their thoughts to Spring and Summer trends for real estate, particularly when looking for new tenants and buyers. Besides regular maintenance and renovations, perhaps it’s time to consider increasing value through outdoor amenities.

Your investment property is not your home.

There, I said it.

It’s something every investor knows, but that doesn’t stop some from getting tripped up when they get a vision in their minds of what they want their investment property to be.

We have to hold ourselves back at times when we are renovating properties that real estate investors will purchase from us as investments.  It is easy to justify each dollar as a smart investment, but harder to make each dollar pay off in return.

It’s not a bad thing to want your property to be the best possible version of itself, but focusing too hard on shaping it into your vision of perfection can end up draining your time and money faster than you can think. Before you know it, it’ll take several years of renting to even begin to make up for the cost of property renovations.

Property renovations can get very expensive very quickly.Real estate investors need to prioritize their renovations to get the most for their time and money. Research shows that the most bang for your buck can be found in the overhauling of two rooms in particular — the kitchen and the bathroom.  There are two unfortunate points connected to that little bit of research.

1. Bathroom remodels and kitchen remodels, just by the nature of what goes into them, can cost a lot of money to renovate. 
2. Both of these rooms in the house involve plumbing. Any work that involves tampering with plumbing is going to drain your money.