The Smart Fixer-Upper
Buying real estate is a great way to turn over a profit and build your collection of investments. If you don’t have a lot to spend or simply want to increase your profits, it isn’t a bad idea to look for a fixer-upper investment. Not all fixer-upper properties are good options, but these five tips can help you make the right decision.
1. Don’t Spend Too Much
Some fixer-upper properties are worth more than others, but you should never spend too much on a property that is in need of serious repair. When choosing a property to invest in, total up the estimated charges for making repairs, and add this number to the cost of the property. Then, make sure that you will be able to make a comfortable profit after all of these costs.
2. Have a Professional Take a Look
Some issues with fixer-upper investment properties can be more serious than they appear. If you don’t have a good eye for potential damage, such as structural issues, it’s a good idea to have a professional take a look. Although you will have to pay for an inspection, you can actually save a lot of money in the long run by knowing exactly what condition the home is in.
3. Pay Attention to the Location
Homes can be repaired and made to be worth much, much more than their current value, but the location isn’t something that can be easily changed. Along with looking for a house that you can restore to make more valuable, you should also pay attention to the neighborhood that it is in. Look for a safe neighborhood with reasonably high property values for best results. If you do choose to invest in a fixer-upper that isn’t in the best of areas, you should keep that in mind when determining how much to spend.
4. Hire the Right People to Do the Work
A lot of repairs can be very costly when you factor in the cost of materials and the cost of labor. By finding the right people to do the work, you can save a lot on these repairs and therefore turn over a higher profit. If possible, it’s a good idea for you to do some of the work yourself; this is one of the best ways to get the work done right while still saving money. If you don’t know much about making these repairs or don’t have the time to handle them, you should shop around for a repair company that will handle the job for a reasonable price. All of the costs that you can cut during the restoration process will add to your bottom line later on.
5. Make the House a Home
Make modern repairs, and make sure that the home is structurally sound. Ensuring that it looks great and is safe before selling is the best way to make a nice profit off of your fixer-upper investment.
Buying properties, restoring them and selling them for more than you paid for them is an excellent way to turn a profit, and following these five tips will help guarantee your success.
Related: Buy Fix and Flip Properties