By: Alejandro a.k.a Sir Fix-A-Lot
Fixing up a fixer-upper is undoubtedly a trend these days. Whether it’s to stay in yourself or to flip to make a profit, a fixer-upper is sure to be an exciting project. But perhaps you’re still in the consideration phase of deciding whether it’s for you or not.
As far as narrowing down your ideal fixer-upper from a sea of would-be potentials go, unique factors that might influence your purchasing decision include:
The right area
Choosing a property in the right area will make all the difference concerning whether you’ll be able to fetch a higher price for it should you decide to flip it for a profit further down the line. On average, properties in higher-end areas generally have a higher market resale value. So going this route may mean you’re able to ask for a lot higher if you decide to sell one day.
Don’t go over budget.
Of course, your budget is going to play a critical role in how much you can renovate and whether you’ll be able to complete your renovations on time. Here, focus on those areas of the property that don’t require as much investment but will still raise the value of your property quite significantly, such as renovating the kitchen or bathroom while not losing sight of how much you’ve allocated per spend to ensure you don’t exceed your budget too much.
Avoiding properties with too much structural damage
Properties with excessive structural damage are probably best to avoid the investment as theystructural damage are probably best to be avoided as the investment may be too substantial or not worth your effort to repair because they are simply irreparable.
What to tackle first
Perhaps you’ve found the ideal fixer-upper that’s got you raring to go. Before you get started, it’s better to have a plan in place beforehand of what you’re going to tackle first in order of importance.
For example, you may want to focus on home improvements that don’t require a high level of expertise that pretty much any home DIYer can tend to do. This can include removing shelving, painting, applying wallpaper or backsplashes, and improving the general decor from room to room, depending on what you’re talented at.
On the other hand, hiring a contractor for those more technical jobs may be a better idea, especially if you require proof that it has been done correctly. Things such as plumbing, electrical wiring, installing HVAC systems, carpeting, tiling, and installing cupboards are best left to the professionals.
Should you sell or keep it for yourself?
Deciding whether to sell or keep a fixer-upper for yourself is a matter of preference at the end of the day. Suppose you have no interest at all in the business side of flipping a fixer-upper for a profit. Then it’s better to renovate for the fun of it to transform a drab property into the home of your dreams.
But what if you desire a rental property in the future? Then fixing up a fixer-upper is undoubtedly one way to go about this. Of course, if you plan to do this, make sure to register and obtain an Employee Identification Number (or EIN) to meet all the applicable legal tax requirements so that you can claim back tax rebates at a later stage.
In conclusion, fixer-upper projects are the types of projects you can be proud of, regardless of whether you decide to sell up or not.
Alejandro a.k.a Sir Fix-A-Lot Visit: sir-fix-a-lot.com