Buying a fixer upper is an easy and popular way to get into the real estate business as a “developer”. If it’s done correctly, completing a fixer upper can generate a good about of return. Of course fixer uppers have become increasingly more popular over the last few years, and if the cash is there it could be a good option as an investment. Especially here in North Texas where the real estate prices are expected to continue to climb over the next few year, investing in a fixer upper might be an excellent opportunity. As stated before, it must be done the right way; here are a few tips for when you’ve decided to buy:
- Check the zoning – this will tell you what you can and cannot do with the home, so it may be the most important part. Zoning can impact even the smallest parts of fixing up a home, such as what type of windows to install. It’s especially important in historic areas because zoning rules can be much more detailed to protect the history. To check on the zoning rules visit the municipality’s website or arrange to meet with a staff member.
- Have it inspected – this should be done when purchasing any house, but it’s especially important with fixer uppers so you know exactly what will need to be replaced and much you may need to spend. A home inspector will check things like the foundation, the plumbing and electricity, among other things. Walk through the building with the inspector and ask any questions you may have. You may want to ask about any specific issues having to do with the region, or neighborhood you’re in; for example maybe the water mains are old.
- Hire and architect/contractor – you should get a professionals opinion on you’re new design plan for the house. The architect will also be able to point out the load-bearing walls, which is so incredibly important. Get different quotes when hiring a contractor and choose the one you trust and feel most comfortable with. Having a professional fix the home instead of you trying to do it yourself will pay dividends in the long run.
- Look into tax incentives – some areas give tax credits to homeowners that improve their home, something to check out.
Handling a fixer upper is not as easy as it seems, there is a lot to think about and a lot of money at steak. Perhaps above all, remember to be patient, make educated decisions, and enjoy the process.