Fixer Upper Houses: A Diamond In The Rough
If someone is savvy enough, they won’t have a problem making money and improving living conditions since the real estate market “bubble” has burst. Some excellent examples are flipping houses, buying rental property, and fixer upper houses. There are many people who have felt the pain of this collapsing market, but others have seized this golden opportunity.
Fixer upper houses can make excellent investments, if you know how to make the needed repairs or can have them made inexpensively. You can buy the house in poor condition, bring it up to the standards of the neighborhood, and then sell it or rent it to other people. The term “flip” has been invented to refer to transactions in which people renovate and sell such homes quickly. Such homes are called investment properties or rentals if they are rented out after the renovations.
There’s no shortage of clever ways to find fixer upper houses. Often, houses that are being foreclosed upon will need repair or upgrades that the current lender is unwilling to perform, usually because they have decided against investing more money into a home that they already know will be sold at a loss. This provides an excellent opportunity for a new buyer who is willing to undertake such repair or improvement.
Often, a foreclosed house it not up to par with the other houses in the neighborhood. If the property is repaired and renovated to the neighborhood standard, then it could be sold for a much higher price than a home not fixed up. By cleaning up the eyesore of the neighborhood you will help protect market values and make the neighbors much happier. If you plan on renting out the home, a newly renovated house will have a much higher market rent than one in not as good of shape.
Homes being auctioned by tax sales is another good place to find homes that may need repairs. These homes are being auctioned off because the property tax for them is delinquent. There are many reasons a home may be behind on property tax. Perhaps someone got in too deep on an investment. Maybe the home belonged to an elderly person who can know longer afford to take care of themselves, or even passed away. Or they could be the victim of the adjustable rate hike because the Subprime market has yet to be foreclosed upon.
Regardless of how you acquire your fixer upper houses, if you keep an eye on your bottom line, are honest in your dealings, don’t over-improve the properties and do good work, you can either sell the houses or rent the houses and have the renters pay your mortgage. No matter which avenue you choose, both you and the neighborhoods where you hold your properties will stand to benefit. Who knows, if you like the improvements you’ve made, you might find yourself a new home.
The simple fact that the Real Estate market has gone flat makes the opportunities for profit and renovation projects endless. Flipping houses and buying rental property are wonderful examples of others taking advantage of the current situation to prosper. Fixer upper houses can make excellent investments, if you know how to make the needed repairs or can have them made inexpensively. You can buy the house in poor condition, bring it up to the standards of the neighborhood, and then sell it or rent it to other people. Regardless of how you acquire your houses, if you keep an eye on your bottom line you can make a profit.
- Kent Hamilton
