If you're a fan of HGTV like I am, you have probably seen your fair share of fixer-uppers. TV shows tend to make everything look easy, especially home flipping or updating. So how do you decide if a fixer upper is worth your time? Here are a few scenarios where diving in usually pays off.
1. The upgrades are simple.
First, you need to find out what types of issues are going to need updating and recognize your personal skills. If a home has foundation, electrical, or plumbing issues, chances are those aren’t easy fixes unless you are a contractor yourself. When it comes to cosmetic fixes, there is usually less of a safety risk so if you’re willing to do the work, those are the houses for you.
2. When the numbers pencil out.
You need to ask yourself if all the work you will put in is going to make the property worth as much, or more, after you’re finished. Sit down and run the numbers, and decide if you are willing and able to stick to a budget. If you’re handy and willing to put in the hours it may be worth it if your budget may be much smaller than what you would spend on a move-in ready home.
3. You have the time and resources.
Sometimes when investing in a fixer-upper, there will be work that needs to be done where you may not be able to be in the house during construction. Do you have a friend or family member close by where you can crash while the house is getting rewired, or the insulation is getting installed? If not, is there wiggle room in your budget for a night or two in a hotel when there’s a small emergency with the water pipes? It is important to recognize where you are in life and if you are mentally, physically, and fiscally able to invest in a fixer-upper.
Purchasing a fixer upper can be great investment opportunity when you plan on flipping it or living in it. The pay off can be huge if you do it the right way. For list of fixer-upper homes in your NJ area reach to kbrechka@gmail.com.