A Fixer Upper Home is a property for sale that needs repairing, remodeling, updating, and/or any other general maintenance before it’s in a livable condition. They are often termed as “diamonds in the rough” for being poorly maintained but having a lower market value when compared to other houses in the immediate area. Sounds too good right? It often is. However, purchasing a fixer-upper can be a distressing decision. Before you take the plunge, here are some things to consider and to ensure that the purchase of your fixer upper will give you a return profit.
Do the math:
Figuring out if you should buy a fixer-upper requires some basic math. After conducting a thorough assessment of the property, add up the cost it needs to renovate the property. After that, subtract that from the home’s potential property value after the renovation. Also, deduct at least, another 5 – 10 percent for any unseen problems and inflation. What’s left should be your profit.
Pick projects that pay more:
The ideal fixer uppers to invest in are those that require mostly cosmetic renovations such as paint touch ups, floor replacements, new lighting, fixtures, windows, doors, updated kitchens, and bathrooms. Going for houses that require structural improvements that are needed to bring the house in line with others in the neighborhood such as an extra bedroom or a family room can be costly and time-consuming.
Keep the money ready:
The biggest disadvantage of a fixer upper is paying for the renovation. For money coming up with extra cash to cover the repairs and remodeling can be challenging. A debit credit card, as well as a renovation loan, is a good option for them.
Be prepared to put in your time and effort:
Whatever renovation is required, it can be quite cost-effective if homeowners also pitch in by performing DIY tasks. However, if you are not the handy type – be prepared to put in a lot of time to supervise the project. Remember, some homes require less work and time while others will take a reasonable amount of time.
If you are also considering investing in a fixer-upper and require some assistance, contact us at http://www.wholesalehousefla.com/ for more information and a complete database of fixer-uppers on sale in Florida.