Investing In A Fixer-Upper House Can Be Just What You’re Looking For To Live In Or To Invest
Your friends and family might think you’re crazy to buy that $400,000 dump in a good neighborhood where homes usually attract $800,000 – $900,000. It’s nice there but this house is awful in comparison to all the other houses. Do you realize how much work needs to be done?
The seller tells you that a few thousand dollars will fix it right up, but as you look at peeling paint, rusting burglar bars, a messed up yard, old windows, filthy carpeting, no air conditioner or heater, you know there will be much higher home improvement costs. So that must certainly be considered, whether you plan to live there or whether you plan to invest and then sell this house as a pretty lucrative investment to rent it out or sell it for profit. You’ll want to immediately rip off those 30 year old rusty metal bars from the windows, put in the heater/ air conditioner, start painting, etc. Most likely, you’re probably looking at more like $100,000 or more in repairs and upgrades if it’s an old messed up place as described (and that’s a guess since I haven’t seen this place, of course). It’s still a wonderful deal.
It can actually be fun to fix up an old house. Rather exciting to see it come together and up to par with the neighborhood at a much lower price, sometimes with an even higher point value once done. Just ask the right questions before buying. Be sure you check out how long it’s been since the roof, plumbing, and foundation have had any work done. Get qualified price estimates on all of the costs needed for main repairs. If you don’t have the experience to do the repairs yourself, you’ll certainly need a team of professionals to do the work for you. That’s usually better anyway to be sure it’s done in the best manner. Check with your Realtor for recommendations. Get estimates quickly, before someone savvy swoops in and takes that deal before you have the chance. Check with your Realtor for recommendations.
Private money lenders are usually very happy to help as long as they get a percentage of that deal, assuming you plan to sell the remodeled house. You’ll both make a nice profit! This can be a diamond in the rough and certainly worth your time and consideration. If it’s in the right neighborhood, don’t pass up this opportunity!