If you are looking at investing in real estate, you may want to consider a fixer-upper. Before you commit, make sure that you are aware of what is involved in these projects- and whether you are up for the challenges.
Are you ready for a fixer-upper? Here are some pros and cons:
Fixer-uppers may be exactly what a first-time home buyer is looking for and at a price that they can afford. When the property needs some work, you may find that a fixer-upper affords you to buy a home bigger or in a more appealing neighborhood than you originally thought you could with your budget.
Typically, there is less competition and rivalry among buyers for a fixer-upper home than there is for one that is move-in ready. Additionally, the price is likely the alluring factor of a fixer-upper, as well as how the investment may yield gains in the years to come. Mortgage payments may be lower, too, making a fixer-upper more accessible for some homebuyers.
A fixer-upper provides the opportunity to truly customize and personalize the property so that it is exactly the way that you want it to be. Do you possess the necessary skill sets to pull this off? Refurbishing a home is going to require some special skills, so if you are not a contractor, you will need to hire help.
Remember that any real estate investment comes with a certain amount of risk. There is always the chance that you could lose money on your fixer-upper investment, depending on the market as well as the underlying condition of the house.
It is going to take time to refurbish the fixer-upper, and in some cases, make it livable. If you work or have other commitments, it may be hard to get repairs and projects done promptly. The time that you spend may take away from other responsibilities.
A fixer-upper can be a great way to build your capital and diversify your portfolio of investments. Wondering how to finance a fixer-upper opportunity? Go ahead and talk to the money experts at 18 Sierra Financial to learn more today!