Buying a Fixer Upper for a Real Estate Investment
The problem with buying fixer-uppers for real estate investment is that they need….fixing! That may seem like a ridiculously obvious statement, but it is one that needs repeating.
If you are thinking of doing this for an investment, remember that major repairs to a home are very, very costly, so if you don’t have the skills to roll up your sleeves and do the majority of the work yourself, this kind of investment may not be for you.
If you do have the skills, then you need to consider several factors before diving headlong into the fixer-upper game.
Consider your skills vs the work that needs to be done. If a home needs a new foundation, or has other structural damage, and you don’t have the skills to take on that task, then remember that a major repair will be very costly and may make your investment a waste of money. The term “money pit” was coined because of investment homes that required far more investment than they were worth.
Make sure you do diligent research of the neighborhood where the real estate is located. You will need to know what the resale value of the fixer-upper will be once improvements are made, and you need to know whether sales in that area are sluggish or great.
If you have few skills then you might want to go into partnership with a contractor, or at least a very handy do-it-yourself person who can help you with the remodeling and repair tasks.
Before buying, detail the work that needs to be done and then make a budget. If, once you make that budget, you determine that you can’t stay within the budget, don’t take on that investment. Most home repairs run over the estimates, so keep that in mind if money is tight.
Upgrading a fixer-upper can be a great real estate investment. It can also turn into a money pit. Do your homework before you take on such an investment.
Sports Relocation, Inc. Sports Relocation, Inc assist players/coaches of all professional sports leagues including the NBA, WNBA, NFL, MLB, NHL, and entertainers relocate nationwide by servicing their Real Estate & Relocation needs. Ikem Chukumerije is licensed to practice real estate in New York, California, Nevada, Florida, & Georgia. Sports Relocation, Inc operates nationwide and provides elite athlete relocation services in all 50 states and internationally.