Buying a fixer-upper can be a fantastic investment because fixer-uppers tend to be much more affordable than houses that aren’t in need of many renovations or repairs. But is it worth it? Watch to find out! Or read below…
Funny story- my husband and I bought a fixer upper when we had a 12 month old and another baby on the way (although I didn’t know yet)! It had different colored shag carpet in every room. And the smell! Oh, the smell. So if we can get thru that, we can get thru anything! Haha. It’s tough work but sometimes it pays off! Let’s chat more about it.
Many buyers will purchase fixer-uppers with the intention of flipping them for a profit. However, not every fixer-upper is a great deal. If you’re not careful, you could end up with a money pit.
If you’re going to invest in a fixer-upper, whether it’s to flip the house for a profit, to rent the house, out or live in it yourself, make sure that you keep these four things in mind before you decide to buy.
1 – THE FIXER-UPPER LOCATION
There’s no point in investing thousands of dollars fixing up a house in a neighborhood full of abandoned buildings and overrun by criminal activity. It won’t matter how beautiful the house looks after the renovations, if the surrounding area is unlivable and no one wants to live there.
If you’re going to buy a fixer-upper, make sure it’s in a neighborhood where the buyer demand is high.
2 – THE FIXER-UPPER FLOOR PLAN
When checking out a fixer-upper, pay attention to the floor plan. If the kitchen is upstairs and the only bathroom in the house is in the basement, you’re going to have to do some serious remodeling in order to remedy this.
And it’s probably not worth it since the amount of money it will take to fix it will probably negate any profit you might have made.
3 – THE FIXER-UPPER CONDITION
There’s a big difference in buying a house that needs to be repainted and buying a house where the roof needs to be replaced. Certain repairs are going to cost way too much, making the low price of the house totally irrelevant.
4 – THE FIXER-UPPER CONFIGURATION
The number of bedrooms and bathrooms matter. It’s the biggest deal-breaker for any buyer. A three-bedroom and two-bathroom fixer-upper is going to be a lot easier to flip than a two-bedroom and one-bathroom. Keep this in mind when looking at various fixer-uppers to invest in.
If any of these things I just talked about are an issue, odds are you’ll be better off not investing in that particular house. That’s where I can help you make the best decision when it comes to purchasing a fixer upper.
Besides choosing the right neighborhood with plenty of buyer demand, I’ve been through construction myself multiple times before. I know how stressful it is and how tight the margins can be. Doing your research before beginning the project is a lifesaver and I’d be happy to help!
If you’re thinking about making a move, I can help you through the process. Just send me a message or text me at 909-833-1631. No pressure, no sales tactics, just the help and guidance that you need!
Finally, if you’re a resident of Your Foothill Community, I want to let you know that we put out a weekly newsletter of the Foothills’ best events each Friday and I would love to give it to you too, totally free! Go to our website to sign up for it, yourfoothillcommunity.com. We’re on Facebook and Instagram as well if you’d like to connect or let us know about a local business we should feature!
Thank you so much for joining me today, I’ll see you in the next episode!!!
