While you can turn a handsome profit buy flipping a home, there are a few factors you need to take into consideration before buying a fixer-upper.
First, you need to evaluate the price of the property. Make sure it’s priced appropriately for the condition it’s in and what that price will be after all the repairs are done.
Next, figure out how much of those repairs you’ll be able to do on your own and how many you’ll have to outsource for. It’s one thing to repaint the walls or lay down some new carpet, but when it comes to any plumbing, electrical, or foundational work, you’re probably better off leaving that to the professionals.
You’ll also need to get good repair estimates. A kitchen repair can cost anywhere from $10,000 to $40,000 depending on what you want to do, which is having a contractor take a look at it and give you a good estimate will make all the difference. You should get these estimates before you even make an offer on the property, because the price of fixing a home has increased dramatically over the past few years—in fact, it’s almost doubled.
Lastly, know what your stress limits are. Fixing and flipping a home isn’t without its headaches, and oftentimes these projects take longer than you think. Unanticipated problems can arise and costs you more than you originally estimated, so your ability to deal with these variables is crucial.
If you’d like to know more about buying a fixer-upper or you have any other real estate questions I can help you with, don’t hesitate to reach out to me. I look forward to hearing from you.
