Buying a Fixer Upper as Your Next Property
Are you considering buying a fixer upper as your next home? Let’s walk through the pro’s and con’s of a buying a fixer upper.
- You can often buy a home below market value. This will allow you to keep your monthly mortgage payment low.
- If you don’t have the budget to remodel your home all at once, you can work on the home room by room until your project is complete.
- You can make the home your own by customizing every room to your personal taste.
- If you decide to sell the home later, you will make a profit, since remodeling increases the property of your home.
- Fixer Uppers can turn into money pits. If the re-modeling is extensive, you will need a substantial amount of rehab money, on top of the down payment money.
- You will need to hire a lot of people to help you with different parts of the projects. You may need contractors, plumbers, flooring experts, roofers, electricians, etc. Service expenses can add up.
- Sometimes these project times take longer than expected. If you are living in the home, you may be living in not so great conditions until your project is complete.
There are resources that can make buying a fixer upper the best option. If you don’t have the rehab money. Many lenders will also lend you the money to fund your home improvements as part of your overall financing. Your best scenario in this case is to make sure the home qualifies for conventional financing, so you are purchasing as an owner occupant.
When buying a fixer upper, it’s important to make sure you get an inspection. You want to make sure there are no huge surprises after buying the home. This way you can ensure you are getting a great deal. You also want to make sure you are buying with a good margin, so if you do decide to resell the home afterward, you can make some money.
It is important that you have the right guidance. Someone that can help you find trusted contracts and help educate you on all of the resources available to you.
Are you interested in discussing buying a fixer upper? I have helped investors purchase over 1,000 homes in my career, many of which were fixer uppers. I have rehabbed over 57 homes myself.
Give me a call and we get talk through your questions and concerns so that you can make an educated decision.
Guidance from an experienced Real Estate Professional, who is also a successful investor, will make your investment success move along quicker with fewer issues.