Buying and flipping fixer-upper properties are generally more affordable than buying homes in good condition. That’s why more millennial buyers flip homes instead of buying brand new units today. They’re enjoying the leisure of redesigning and redecorating homes to suit their taste as well.
Keep these tips in mind before Buying a Fixer-Upper Home today
Yes, flipping a home is great, but it’s definitely not easy. A successful outcome requires patience, hard work, and budget among other crucial considerations. That’s why you should learn these key points of home flipping before buying a dilapidated property.
Your Needs and Wants
Be sure to purchase a rundown home that has a basic structure and specifications that can satisfy your needs. Though it’s possible to add a thing or two during renovation, you can save more if you don’t have to.
For example, your whole family needs three bedrooms. Avoid properties with only two bedrooms and simply thinking to add another one during the renovation. That means additional floor area which translates to major renovation and expenses.
Location and Neighborhood
Never set aside location when finding a home to buy. That goes to rundown homes as well.
First, it can dictate the value of a home upon purchase or when you sell it later on. Second, it would affect your transportation and accessibility convenience to key establishments, such as supermarkets, hospitals, and schools. And third, some neighborhoods, especially those covered by homeowners’ associations, would affect or restrict the design you can do during the renovation.
Hire a Home Inspector
You can visit and check a fixer-upper yourself. But hiring a seasoned home inspector would give you deeper and thorough analysis of a property’s condition. That would give you helpful ideas on how to go with the renovation since you know what to fix and what to add. Also, this helps you avoid properties with hidden but almost unrepairable problems.
Carefully Plan the Renovation Process
Be sure to plan the renovation thoroughly. Better yet, make a checklist of small and major fixes to do. From simple repaint, changing fixtures and changing doorknobs, to hard work such as changing entire roofing and reconstructing foundation.
Consider how long it would take as well. A month would do for simple fixes, but you may need to spend six months or more than a year for major renovations. And if you think you cannot do it on your own, hire a contractor instead.
A place to Stay while the Process is going on
If the house only needs minor fixes, your family may live in it while the process goes on. But if it requires big projects, you should find a temporary place to stay. You’re lucky if you still have your own home, or if you can stay in a friend’s house. If such choices aren’t applicable, consider renting an apartment for a few months.
Budget and Finance
Now, consider all of the factors above, plus the price of a property you want to buy. Be sure you have enough budget for it. You can ask your realtor, your home inspector or the contractor for some estimation when you’re unsure.
If you need financial assistance, know about the FHA 203(K) loan. This would help you have financial coverage for the cost of a rundown home and necessary repairs. And you only need to pay 3.5% of the total cost as a down payment.
Finally, be sure to prepare yourself for all the hassles in buying and renovating a fixer-upper home. Stretch your patience further, and consider all the factors above to guide you. That would help you have a home you need and want afterward.
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