There isn’t much as exciting as a project, and while a fixer-upper is undoubtedly at the pricier end of a hobby. You can pretty much pick up a great fixer upper at any time in the year, which is excellent news for people who have a budget ready to spend and some ideas of what they’d like to do to the property. There is no exact science to guarantee you will make a profit on the house you choose to work on. But here are some tips about how you can get the best starting points.
THE IDEAL NEXT MOVE
There is an ideal home out there for almost anyone, but you have to know who is looking for what. Most first-time buyers are looking to purchase a house that is as new as possible. Something turnkey and ready for them to walk into. However, all of those little things that people might deem as imperfections are your jumping-off point. Most things that put people off are cosmetic and very easy to fix.
Although most of the time, you will get a really great deal on a fixer-upper, you’ll still need to arrange the funds. In many cases, you can work with a great mortgage broker, check out this website for more details.
LOCATION, LOCATION, LOCATION
This is going to change the type of people who are going to want to buy your property. Typically people with more disposable income will want to be somewhere a bit greener but with excellent transport links into the nearest city. Often they have children and so you’ll want to consider the schools nearby as a bonus too. Up-and-coming neighborhoods are also a great idea because there are often developments happening all around that will up the prices when it comes time to sell.
A three-bedroom home with at least one bath is what most people have down as their must-haves. If you purchase a property with 2 large bedrooms, you can split one to reach the ideal 3 bedroom scenario. People who have the budget for 3 bedrooms might be able to stretch to four and more. Work based on the prices of other properties in the area.
"I believe the next generation of home owners will value sustainability over size
and community over commuting."
- Ty McBride
COMMITMENT TO THE CONDITION
You need to be sure of how much work you are willing to put into it. This will give you more space if you decide to take on something that will need to be gutted and completely renovated. Be sure that you can separate the fundamental issues from the simple cosmetic ones.
You need to have any home that you are going to purchase inspected; this will give you a clear idea of the work that will need to be done. Often it is work that you wouldn’t notice on a tour or two of the home. You might also want to get pest inspections, engineering reports, sewer line inspections, a home warranty, and roof certification.
Flipping houses might become more than a one-off hobby when you truly begin to
think outside the box and see the true potential of the bare bones.
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