A Quick Guide to Buying a Fixer Upper Home

A Quick Guide to Buying a Fixer Upper Home

One of the essentials of rehabbing properties is buying a fixer upper home. Also known as handyman specials, fixer upper homes are properties being sold at prices lower than their market value because of their deplorable condition. Despite their unattractive appearances, rehabbers consider them as diamonds in the rough because these houses can bring them lots of profits with the right amount of repairs and "polishing."

Investing in handyman specials and distressed properties, however, can be quite risky. You should also be prepared for a lot of work. But if you do your homework well before you purchase such houses, it would be easier for you to minimize risks and generate positive cash flow.

Here are some pointers on investing in ugly and undervalued properties:

When buying a fixer upper homes, see to it that they have a great location. No matter how much effort you put into renovating a fixer upper home, no one would want to buy a house that is located in the middle of nowhere or in a neighborhood with a high crime rate. Always remember the three most important words in real estate investing: location, location, and location.

Determine the after repair value of the property. You can do this by identifying the amount many similar houses are being sold for. You can also hire a professional appraiser, who can help you ensure that the distressed property that you like is worth investing into.

You should also hire a home inspector to determine the true condition of the property. By acquiring the services of an inspector, you'll get an accurate estimate on the cost of repairs on a fixer upper home.

When rehabbing handyman specials, meanwhile, find out which fixtures and furniture don't need to be replaced. Although these properties are mostly in bad shape, there are instances that certain fixtures in the property are still usable and in fairly good condition. You can save a great deal of money by "recycling" usable furniture.

To minimize expenses and get bigger discounts, always consider buying a fixer upper home from motivated home sellers. Because these sellers are in a hurry to unload their properties due to pressing reasons, they won't waste too much of your time and will accept your offer no matter how low or high it is.

For more information on investing in fixer upper homes, handyman specials, and undervalued properties, go to www.RehabList.com.

POST COMMENT

The Difference in Choosing A Travel Steamer from A Home Clothing Steamer Bugs Have Invaded My Home Custom Bathroom Cabinets Synthetic Grass Vs Grass Paint Doorstep loans: convenient funds to sort out temporary demands Everything You Need To Know About Plumbing Northridge, CA A Real Estate Mentor is What You Need Get a Good Head Start in Real Estate Investing What importance does Granite worktops have in kitchen? Picking the right plumber The iron man comes to the World Cup – Lampard home theater Ibanez Jet King - Pvc Butterfly Valve - Pneumatic Butterfly Valve Manufacturer Kitchen Rack - Keep Your Kitchen Well Organized And Less Cluttered