Project vs Dump: 3 Warning Signs to Look Out for in Fixer Uppers
If you like a challenge and love working on buildings that need some TLC, keep reading. Some homebuyers are always on the lookout for a new project that could be an investment in the making, something to keep them busy with but also for recreational reasons. Buying an older house is not a big deal. But you should buy one that won’t bleed you dry too. In this post, we look at some of the signs you should be on the lookout for before buying a fixer-upper.
Too Much Damage
If you notice a sagging ceiling, floorboards that are broken, a kitchen with no wiring, and broken windows, you should probably run for the hills. This is not a fun little project that you can make some quick cash on with minimal effort. This is an overhaul, ER situation. Remember you don’t want to spend more on the house than what you should.
Price is Not Right
Okay, so you don’t scare quickly, and you want to take it on. But the owner is asking a ridiculous price for a house that is all but roofless. Be sure to check what the house is worth at face value, before getting bullied into a buy that you will regret and that will most definitely cost you more than you bargained for.
No or Slow Cash Return on Investment
Look, we know money makes the world go round, but in all seriousness, if you spend a truckload of cash on revamping a house, with the goal to re-sell it and make a profit, or maybe rent it out, but you cannot calculate how you will get there with all the costs needed for the fixing etc, it is not worth your time anymore. This is especially the case in the Tallahassee real estate market.
Fixing up and selling older houses is a fun hobby and can be very lucrative if you know what you are doing and what to look out for when buying these ‘fixer-uppers’. Be sure to be aware of all the pitfalls, and have a budget at hand to work out what you need to spend in order to make money. We hope you’ve found our pointers helpful! Tell us your fixer-upper story in the comment section below.