One way to build your personal wealth and even provide a comfortable life for yourself is to buying houses that needs fixing and then selling them for a profit. This is something that can come with huge profits if you live in the right market for it. However, it can also be a big mistake if you aren’t careful about it. There are several things that you need to consider before you buy a fixer upper to try and flip. Deb Maher Realtor is here to talk about some of the things you need to consider before taking a leap into the world of fixer uppers.
Consider the Repair Costs
The first and most important thing that you need to consider when you are thinking about a fixer upper is the repair costs that will be involved in the process. They can be extensive. It is going to be essential that you have a home inspector working with you on this part, as well as a contractor, so that you have a clear picture of what needs to be done and how much it will cost. If you are doing the repairs yourself, you will want to do some homework so that you know exactly what the cost is going to be for all the things that you are planning on the home.
Don’t Forget Hidden Costs
When you’re fixing up an old home, there are always going to be surprises. There is no way around it. You should budget in some extra cost that will likely not be uncovered until you start removing walls and getting into the bones of the house. There might be plumbing issues to be addressed, electrical problems, and even structural issues that you are going to need to have budgeted for.
Calculate the Final Value
This is where working with a realtor is going to be helpful. You want to make sure you have a good and realistic estimate of what the final value of the home is going to be. A realtor can help you find comparable listings that can give you a good idea of what you’ll be working with. This is the fastest and most efficient way to get the information you need.
Come Up with the Difference
Now you will be able to see what your profits are going to be. To get this number, you will need to subtract the costs of the repairs from the projected final value of the property. Don’t forget to add in an additional 5-10% to account for those surprises that we mentioned above. This will help you see the potential or uncover the home as a money pit.
Residential House Property Sales & Rentals in Gatesville, Valley Mills, Robinson, Lacy Lakeview, Bellmead, Hewitt, Woodway, Greater Waco, TX | North & Central Texas Real Estate
Before you buy a fixer upper, you will need to work with the realtors at Deb Maher Realtor to ensure you are making a wise purchase. We will help you run the numbers before you make this big decision. Call us today!
