One term many have heard of, but are unfamiliar with, is a fixer upper. In case you are wondering, a fixer upper is a type of house on the market. Basically, it is a great home that needs a little bit of rework. Not the prettiest of sights, but usually in a decent location and available for a great bargain. A fixer upper, just as its namesake, is highly suitable for improvements from it’s new owner.
Fixer uppers are great because there’s a ton of potential in them. In fact, many people make a lot of money from these houses. They buy them for cheap, fix them up and make it look nice and sustainable, then they sell them off at a much higher cost on the market. Not many people know that fixer uppers can skyrocket in value with just a little bit of funding.
If you are considering a fun, fulfilling and financially solid hobby or side hustle, why not try working on fixer uppers? It might not be easy right off the bat, since you will need to know some industry secrets, from the basics such as where to start, to the more advanced things such as if a fixer upper is worth it, what will your costs and returns be and much more. In fact, here are a few tips you should keep in mind to help you get started.
How much will the renovations cost?
The first step of renovating a fixer upper is planning and understanding. You will need to calculate how much the renovation will cost, and what is usually needed to be repaired. That means you have to take every single aspect of the house and compound into consideration. Outdoors, indoors, plumbing, electricity, damage and everything in between.
This is not as easy as it sounds as there are always unforeseen circumstances or hidden costs, especially when analyzed by an untrained eye. When you are looking at renovation costs, the best way to have a solid quote and understanding is by talking to an expert. A professional handyman, such as those from BBOJ, could survey your compound and tell you exactly what you need to know about the price and project requirements.
Will it pay?
At the end of the day, you will have to make the decision if it will be profitable after selling. That is both a benefit and a setback for you. For example, if you renovated a fixer upper on a great location, it is bound to sell fast. With the high demand, you could even sell the house for more than double of what you paid for initially, including the renovation costs. However, likewise, if you picked a bad location such as next to a cemetery or a dodgy part of town, the demand will not be as high, and you might have difficulty turning it over for profit.
Plus, other than location, you will need to see the other factors that play into this. For example, the age of the house, and what material it was built with. How much of the house has been renovated, and will the repairs cost too much.
Inspect everything
You should inspect everything in the house before deciding if it is worth it or not. This is because some repairs are more expensive than others. For example, cosmetic fixes are actually relatively budget friendly. Things such as wall paper and dry paint can be done cheap, and in fact, you can do it yourself. However, projects such as installing new windows, refurbishing the roof, fixing the leaks in the pipes, rewiring electricity and installing new systems can really put a dent in your budget. To avoid this, make sure you have a checklist of everything that needs to be repaired.
Do you have the time?
Renovations take a ton of your time. In fact, even many simple fixes, especially if you are doing it yourself will take up a considerable time. Eg, painting the walls of a single room could take you up to 2 days, so you have to consider if you have enough time. It is important that you try to only choose houses to be fixed up that don’t require months of your time if you are doing it yourself.
