5 Ways To Use Your Tax Return To Add Value To Your Orange County Investment Property

If you are an investor in Orange County an excellent way to use your tax return is to add value to the properties you already own. In our latest post, you’ll learn about improvements you can make to add value to your Orange County investment properties.

Many people will use their tax return on something material or frivolous that only provides a one time reward. But what if instead of using your tax return on a new tablet or tv, you used the money to build equity in your home? Adding value to your property will only benefit you over time. Keep reading to learn about some of the best ways to use your tax return to add value to your Orange County investment property.

Increase Efficiency

Replace old, worn out appliances with their more efficient counterparts. Your new appliances will ultimately pay for themselves over time by providing lower electric bills and maintenance costs. Newer and efficient appliances will be a huge draw if you are attempting to rent the property out. Prospective tenants will likely be paying their own utility bills and will jump at the opportunity to save some money. Increasing the efficiency of your appliances will offer benefits for years to come.

Curb Appeal

A few small changes to your front yard can make a huge difference in the way your property is seen by prospective buyers or renters. A few easy things you can replace include the front door, mailbox, porch light, and house numbers. Updating your landscaping with new flower beds or trees isn’t a bad idea either and can be done for a relatively low cost.

New Paint

Painting a room can completely transform it and give it new life. Plus it is a project that can be done pretty inexpensively in comparison to other renovations within your home. You’ll likely be able to do most of the work yourself, paying only for the materials and the cost of your time.

Flooring

A new floor will completely change the look of a room. Even if you don’t do the whole house, upgrading the floors in a room or two will definitely add appeal to your property. Whether you choose to go with tile, laminate, carpet, or wood, adding new floors to a portion of your home can dramatically change the way it is seen by potential buyers and renters.

Kitchen

Adding a backsplash or new hardware can dramatically change your kitchen without having to do a major renovation. You could even repaint old dreary cabinets giving them a whole new look and feel. If you have an appliance that is on its last leg, now is the time to begin shopping for something new, not when it breaks down at the most inconvenient moment possible.

Home Improvement Deductions

While making improvements to your Orange County investment property won’t likely be deductible, you’ll still want to keep track of how much you spend. When you make improvements to the home, the amounts can be subtracted from your overall tax basis when it’s time to sell the property. Under current tax laws, the first $250,000 of profit is already tax-free, so tracking every single dollar may not be as imperative. But by using your tax return for renovations, you’ll not only be improving the property to attract more tenants, but you will possibly be able to save yourself some money over the long-term. Keep in mind, this applies to things that increase the value of the home, not your ordinary, everyday repairs.

If you want to learn more about how to use your tax return to add value to your investment properties, we can help. Send us a message or give us a call today! 949-625-4533

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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