How to Make a Large Return on Investment by Buying a Fixer Up Home
By Mark J. Donovan
|Buying a fixer up home is a great investment, particularly for the DIY homeowner who has the time and money to put into the home. However, if you’re not absolutely committed in investing the time and money into the fixer up home, think twice before buying it. Selling a fixer up home can be a difficult challenge. In some cases, you could have an extremely hard time flipping a non fixed up home, and you may have to even sell the home for a cheaper price than what you paid for it just to dump it.
Before buying a fixer up home make sure to have a home inspection. Also, call in an experienced home remodeling contractor to look at the home before buying it.
The contractor can help find structural issues with the home that the home inspector may not find. They can also give you a rough idea of what the most problematic areas are of the fixer up home and how much it may cost to repair and fix up the home to your satisfaction.
|As I’ve just mentioned, structural issues with the fixer up home should be your chief concern. A crumbling foundation or sagging floors could cost you many tens of thousands of dollars to repair. Also, most likely the fixer up home will need a completely remodeled kitchen and bathrooms. Understand up front that a remodeled kitchen will set you back a minimum of $15,000, and most likely much more. Bathroom remodels can also cost you up to several thousands of dollars or more, depending upon the size of the bathroom and the types of amenities you want to see in the remodeled bathrooms.|
If on the other hand the fixer up home simply needs some TLC, such as a paint job and various diy repairs, then the fixer up home maybe a diamond in the rough. Rarely this is the case, however, so you need to be fully committed to the work and money ahead to refurbish the home to something you actually desire living in.
Time for Return on Investment on Fixer up Home
It’s also important to keep in mind that it may take some time to recoup your investment in fixing up a home. It really depends on two key factors: (1) the state of the local real estate market when you attempt to sell the home and (2) the amount of money you sunk into the home to restore it to a marketable property.
There’s a reason why fixer up homes are often listed in real estate magazines as a “Handy Man’s Dream”. There’s no truer words written so be cautious.
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