Thinking about purchasing a fixer-upper? This is a great choice as long as you are prepared for what you’re getting into! You don’t want to end up wasting your money on a project that isn’t going to be rewarding. Before jumping into the commitment of purchasing a fixer-upper there are a few things you will need to consider:
1. What are your goals for the house?
Are you planning to live in it, rent it out, or flip it for profit?
The answer to this question will greatly determine the amount of effort and how much money you’re planning to spend on this project.
2. How much money can you afford to spend on this project?
If your goal is to make a profit by flipping the property, then you will need to invest quite a lot of money into fixing it up and marketing it since most buyers prefer newer homes.
If you’re planning on moving in yourself, then your budget can be more flexible because you already have money saved up for the house and aren’t reliant on the project turning a profit.
If you’re planning to turn it into a rental property, you’ll need to make sure your future tenants have a place to live while the renovations are being completed. In this case, reduce as many of the hassles as possible by purchasing a property that is already habitable.
3. Who will be working with you on this project?
Are you planning to do all of the remodels, such as the shower remodel, yourself or hire contractors?
If you’re planning on doing all the work yourself, it will cut your costs and give you a greater sense of accomplishment once it is finished.
However, this means more time and effort, as well as more money spent on supplies, tools to do the job, etc.
On the other hand, if you hire contractors for certain jobs, you can save a great deal of time and, therefore, money too. There is a risk that they may take longer to do their work or start charging more once the initial quote has been completed.
4. Do you have any experience renovating homes?
If you don’t have any previous experience, you’ll want to hire a contractor or two that has. That way, they can handle the more strenuous jobs and save you time.
5. Are there any permits required before the work begins? How long does it take and how much does it cost?
Certain jobs require permission from your local authorities, which will have to be purchased before the work can begin. This is known as a permit.
Depending on your area, these permits may cost nothing or thousands. If you’re not sure what it might cost in your neighborhood, check online for more information or call up your local authorities and ask them directly how much it costs.
6. What are your future plans for the property?
If you plan on living in it, then you can focus more of your energy on fixing up parts of the home that affect the functionality and look of certain rooms. If not, think about what will have to be done to improve them for potential renters or customers who may purchase the house.
If you are planning to purchase a fixer-upper, consider all of these factors before diving into the project. You don’t want to buy something that will become too much work for too little return. On the other hand, if you’re willing to put in the time and effort, then there’s nothing wrong with purchasing this type of property. After all, a lot of people have turned their fixer-uppers into beautiful homes. The most important thing to remember is to make sure you prepare yourself for everything that might come up.