Title of Question:
Finding Good Fixer Uppers ?
Name:Jed City: Los Angeles
|
| Question: Hi there, my name is Jed from S.California and have no experience when it comes to houses/home improvement. I was wondering how one can identify good fixer uppers, from a contractors stand point ? |
Post Your Answer To The Question Above:
| Answer: Hi Jed! You should look for houses that are basically sound structurally, but that have cosmetic issues that might chase away most buyers. Avoid any houses that have bad plumbing, electrical systems, foundations, roofs, or walls. These things are expensive to repair, but difficult for potential buyers to "see." You won't be making much of a profit on this type of repair. Look for houses with cosmetic problems instead. Especially if you are new to home improvement, you'll want to make sure that the projects you will need to do to raise the house's value are pretty simple and straightforward. Painting, drywall repair, refinishing floors, updating fixtures, and putting on new siding can all pay off for you. If you are going to be doing any major upgrades or updates, you should focus on the kitchen and bathroom. Buyers are really turned off if these rooms look out-of-date or ugly. Something else to think about is comparing the features of similar houses in the neighborhood. This will give you an idea of what people interested in buying a house in the neighborhood will be looking for in your house once it is fixed up. For example, in some neighborhoods, nearly all kitchens have granite countertops. If you install plastic laminate ones instead, buyers might be discouraged. |
| Answer: Thanks for your feedback Annie. Just out of curiousity what do you think of all these shows they have on HGTV on flipping houses ? I think they're pretty interesting, but I've recently been watching a new show they have called Bought & Sold. Anybody watched it ? |
| Answer: I'm new to this thread, but thought I'd add my two cents. Annie's comments about what to look for are right on the money, so to speak. The t.v. shows are entertaining to watch, but very exaggerated in terms of profit potential. You're not going to make $80K on your first house. You really have to know how to buy right to make money with flipping houses. You have to be willing to put in sweat equity and – the most important part – know what it will sell for when finished. Also factor in all your expenses, the extra mortgage, the real estate agent's commission, etc. If you can do it and live in the house for 2 years or more, you save the capital gains tax on your profit (but it has to be your primary residence.) Anyway, do your homework and it could turn out great! |
| Answer: allison: thanks for the sound advice. i agree, it is really important to have fair expectations at the end of the process. likewise, all that info regarding the 2 year turn around and having it as your place of residence is GOOD advice.
so did you or annie check out Bought & Sold on HGTV? it's all about a behind-the scenes look at the real estate industry, and as you pointed out, it might not be terribly in depth, it's fun to watch and there's a cute guy on it. check out some of the vids @ http://web.hgtv.com/webhgtv/images/pac/59889/st-art_at_home.html?section=boughtsold,panel=video-s- . what do you think about it now? |
|
