Blog - DealMachine for Real Estate Investing

12-Step Renovation Strategy for Real Estate Investors

Written by Maria Tresvalles | Jan 8, 2026 11:29:59 AM

Renovating Properties with a Proven System

Renovating properties can feel overwhelming, especially if you're managing multiple projects or scaling your real estate business. In this guide, based on insights from a 12-year investor and DealMachine Podcast guest, Jiries Dawaher, you'll learn the exact 12-phase renovation system used to increase ROI, avoid costly mistakes, and stay on schedule.

Whether you're flipping houses or renovating rentals, this checklist can streamline every job.

Opening the Door to Bigger Deals

Jiries encouraged investors to get comfortable with renovations. He said this skill expands a buyer’s options. More distressed homes become viable. More layouts can be improved. More equity can be created through design and structure, not luck.

He framed it as an advantage in two ways. First, it widens the buy box. Homes that need more work scare many buyers. Those same homes can be great investments for someone with a plan. Second, it elevates sales skills. A wholesaler or agent who speaks in steps can guide buyers past fear. That shifts the role from seller to problem-solver.

He suggested using a calm voice in tough conversations. When someone says a place needs too much work, break down the steps. Talk through the order from plan to punch out. Show that cost and timeline are manageable. That builds trust with cash buyers and partners.

"You want to position yourself as a team member for someone at the level you want to reach."

In an episode of the DealMachine Real Estate Investing Podcast, Jiries walks through his complete 12-phase renovation system, sharing the lessons, mistakes, and strategies behind each step. Want to hear the full interview? Watch the episode below:

What Are the 12 Phases of a Property Renovation?

1. How Do You Plan the Highest and Best Use of a Property?

A solid renovation starts with a clear plan. Identify the property's potential and how to force appreciation. Ask: What layout changes will add the most value? Eliminate outdated features and repurpose unused spaces, like formal dining rooms.

  • Focus on layout, not cosmetics
  • Identify "the gold" in each property
  • Align upgrades with local demand

2. When Should You Start Demo and What Should Be Removed?

Only begin demo after the deal closes. Remove everything that won’t remain in the final design.

  • Lights, blinds, fans, outdated fixtures must go
  • Use a dumpster or trailer
  • Keep the site clean daily to avoid hazards

3. Why Revisit the Plan After Demo?

Once demo is complete, reassess the space with fresh eyes. Empty rooms reveal new layout opportunities.

  • Confirm if original plan still fits
  • Adjust walls, doors, or layouts as needed
  • Avoid costly mid-project changes

4. What Comes First, Framing or Roofing?

Framing comes next. Build new walls, straighten existing ones, and complete all structural updates. Exterior work begins at the roof and works downward.

  • Interior: headers, beams, joists, new walls
  • Exterior: roof → siding → concrete
  • Gutters installed last to avoid damage

5. Which Rough-Ins Happen Behind the Walls?

Install mechanicals in this order: HVAC, plumbing, electrical. Use licensed contractors and follow inspection protocols.

  • Complete all work before closing walls
  • Insulate and fire-block afterward
  • Schedule inspections before drywall

6. Why Is Drywall a Visual Milestone in Renovation?

Drywall makes the space feel real and shows progress.

  • Hang drywall and cement backer board together
  • Waterproof wet areas with RedGard
  • Spray one coat of primer to catch flaws early

7. What’s Included in the Trim Phase of a Renovation?

Trim work sets the stage for final finishes.

  • Install baseboards, door/window casing, and prehung doors
  • Ensure clean, straight cuts
  • Touch up drywall before painting

8. Why Paint Everything the Same Color in a Flip?

Uniform paint saves time, reduces tracking issues, and appeals to most buyers.

  • Use a single neutral color across all surfaces
  • Spray and back roll for consistency
  • Avoid designer flourishes unless justified by ROI

9. What Carpentry Details Improve ROI the Most?

Final carpentry ties the space together with finishing touches.

  • Install cabinets, vanities, mirrors, hardware
  • Choose modern vanities and metal-framed mirrors
  • Standardize products across projects to save time and cost

10. What Happens During Trade Finishes and Countertop Install?

Bring back trades to install fixtures and complete system connections.

  • Electricians install lights, outlets, switches
  • Plumbers set toilets, faucets, drains
  • Order and install granite or quartz countertops

11. Why Install LVP Flooring at the End of the Project?

LVP is durable and should be installed last to protect it during construction.

  • Run LVP around cabinets, not underneath
  • Use a small gap under baseboards for a clean finish
  • Consider running LVP into bathrooms to simplify design

12. What’s the Purpose of a Punch List and Deep Clean?

The final step ensures the home is truly move-in ready.

  • Test every faucet, fixture, and drawer
  • Tighten hardware and replace anything missing
  • Deep clean the property before photos or walkthroughs

Why Does This System Work So Well Today?

This 12-phase renovation system isn’t about flair, it’s about function, flow, and finish. It helps avoid costly mistakes, keeps crews aligned, and creates predictable outcomes.

  • Each phase supports the next
  • Standardization reduces decision fatigue
  • Clean, repeatable finishes rent and sell faster

Frequently Asked Questions (FAQ)

What is the best renovation strategy for real estate investors?

Follow a 12-step system that starts with planning and ends with deep cleaning. This ensures clean handoffs, lower costs, and higher ROI.

How can I renovate a home on a budget but still get good ROI?

Use simple, repeatable upgrades like neutral paint, white subway tile, and affordable LVP flooring. Swap old vanities and hardware with modern, low-cost options.

What order should I follow to renovate a house efficiently?

Start with planning and demo, then move through framing, mechanicals, drywall, trim, paint, and finishes. Install flooring last and clean thoroughly before listing.

What renovations add the most value?

Layout improvements, fresh paint, consistent flooring, updated kitchens and bathrooms, and modern fixtures all boost appeal and rental/sale value.

How do I handle investor or buyer objections to heavy rehab?

Walk them through the 12 steps. Break it down simply, show timelines and outcomes, and reframe the project as a proven system rather than a risk.

Final Takeaway: Why a Systemized Renovation Process Matters

A repeatable renovation process doesn’t just save time, it builds credibility, reduces stress, and unlocks more deals. By following this 12-phase strategy, real estate investors can flip homes faster, control costs, and scale their operations with confidence.

Whether you're managing rental rehabs, helping buyers navigate heavy repairs, or building a portfolio of investment properties, having a clear renovation checklist keeps you ahead of the curve.

Ready to Apply This System?

  • Start with one property and follow the sequence
  • Standardize your materials, finishes, and vendors
  • Use this guide as a reference for every project moving forward

Want to increase your deal flow and investor credibility?

Bookmark this renovation playbook and share it with your team, buyers, or partners to streamline your next property transformation.