Is fixer-upper an ideal investment?
, such as a fix-upper is definitely great. However, before you start your next project, ask yourself these important questions.
How much work does it need?
There are many degrees of severity when it comes to fixer-uppers. Some properties need only cosmetic work, while others need a complete remodel. It's pretty obvious that the less work a property needs, the less you’ll be at risk of running into something wrong during the rehab. In the meantime, however, the less work a property needs, the more competition there'll be. This is why it is best to look for properties that appear to need plenty of work but that actually need only few repairs.
So, before buying a fixer-upper, it is highly recommended to thoroughly analyze the property and get an accurate estimate of how much it is going to cost to fix it up.
Can I invest time?
Whether you are planning to do the work yourself or not, fixer-uppers need time! You have to be there at the property to ensure the work is being completed correctly, or else you’ll end up completing the work yourself.
Am I skilled at this? Most investors who consider– such as a fixer-upper – plan to do the work themselves. This is highly encouraged, given the work is on a small scale. If you are able to do your own rehab, you can save plenty of money as well as can get a good idea how long projects take so you can better manage the future projects. However, the real question is, do you have the skills required to undertake a project like this?
Do I have the passion?
Or, do you have the motivation to learn how to succeed in such projects? Even if you don't have the skills, the desire and motivation to learn is enough to help you reach new heights.
Fixer-uppers can be a fantastic way to skyrocket your wealth creation, but they also bring along risks. can guide the landlord to undertake better deals. By answering these important questions for every project you are planning to undertake, you can determine the right path for you.