Buying a fixer-upper property is a huge decision. Naturally, every investor wants to find something that makes sense, especially when it comes to purchasing real estate. While everyone’s dream of real estate investing may be different, the trouble with fixer-uppers can vary greatly, despite which type of property you invest in, however they do share some common issues. Sadly, buying properties that are in less than perfect condition can become a nightmare. Without the experience and knowledge that successful investors require regarding every aspect of investing in older properties, you could be stuck with a property that is worth less than you paid.
Bad real estate investments can be a time-consuming, emotionally draining, and expensive piece of luggage. Hesitation can cause good investments to slip by and the fear of making a bad investment can linger for a long time. Taking too much time to analyze a property in real estate can mean the difference between obtaining the property or being a day late and a dollar short. Some never begin their investments into real estate, feeling overwhelmed by the possibilities of what could go wrong or due to an obvious lack of experience. We’ll cover what to look for when buying a fixer-upper property in Stafford.
Hidden Problems
So you are excited about buying your first fixer-upper and getting started-congrats! While you may believe you have found the best deal going on the market, if you don’t know what to look for when buying a fixer-upper property in Stafford, you could be making an enormous mistake. Unanticipated repairs can end up causing the time you budgeted for being surpassed by weeks or even months, which will end up costing you even more. It is smart to add anywhere from 20-30% to your anticipated repairs budget when you are first starting out. If you are not experienced in home construction it might be wise to get a professional home inspector. They aren’t going to find problems behind the walls or in other areas that can’t be accessed but if you are new to real estate they will find things you don’t! It may also be wise to have a professional appraisal so that you can be certain you truly are getting what you are paying for. While it may be expensive to hire professionals to assist you, it could save you thousands of dollars by learning all about the property before ever making an offer.
Location
It doesn’t matter if your plans include a sale of the property for profit after completion of the renovations, or finding something to buy-and hold, location is key. If you have spent any time in the real estate industry, you will know that location is the first thing to look for when buying a fixer-upper property in Stafford. By investing your money in property with as many factors as possible that make up what is considered a good location, you ensure demand for your investment. Is the home next to railroad tracks, in an industrial area, or next to interstate? There are a lot more factors to consider when it comes to location. Consider if you, yourself would live there? Because there is only a limited number of properties in any given area, the supply is limited and holds an even higher value. If you are flipping, while the location might not matter as much to you (it may make it more difficult to sell though), wise investors understand the long term value of a good location and the lasting power it gives to the amount of equity gained on the property over time.
Repair Expenses and Timeline
Professionals in the construction industry should be contacted to provide an estimate for the necessary repairs as well as any renovations or upgrades. They are experts at knowing what to look for when buyers contact them about a fixer-upper property in Stafford. They should also be able to provide a timeline of the job, should you have several repairs, you may wish to hire one licensed contractor to coordinate all of the work. Some people even hire a general contractor to manage and supervise the other parties that are involved to ensure a smooth process. This general contractor will schedule the repairs in an order that makes sense. For instance if you have an electrician in the home the same time as the cabinets are being refinished it might present a problem for the cabinet refinisher if they don’t have electricity. You should also contact at least three professionals to ensure that you are getting fair estimates to make your determination about your ability to afford the property. Should you endeavor to undertake repairs yourself, be certain you are up to the task. Do not bite off more than you can afford to chew, you could become physically and financially exhausted. Many investors find themselves in over their head and sell the property halfway through the repairs…
A great deal of data is pulled together in order to determine a realistic budget for fixer-upper properties, as well as a complete understanding of the time involved and what that adds to the bottom line. Wouldn’t it be nice to have a professional in your corner, looking out for you? At We Buy Houses, LLC our experts have the experience to spot hidden problems buyers may miss when buying a fixer-upper property in Stafford. Why not start reaching your investment goals today? We welcome you to send us a message or call We Buy Houses, LLC at with any questions you may have, with no obligation.