I wanted to ask if buying a fixer upper out of the joy of re-doing the house would be worth it for a first time property buyer? Of course not buying a fixer up just for joy but being able to make a profit out of it mainly. But can wanting to do something to keep you busy like fixing a house be a potential reason to buy a fixer upper? Or am I just not thinking straight? I understand you don't want to buy a house that's nearly burnt down to fix but more like a house that may need dry wall or paint or maybe flooring and things that wont cost an arm and a leg and that are quick and easy to do. Well and relatively possibly with out a contractor. I find myself often bored and would like somting to do. So as a first time buyer would that be an option?
Well, that's how I make money in this business. I buy small single-family rentals, fix them up alone and with helpers, and rent them out. It's also exactly how I got into this business, volunteering to fix my girlfriend's beat-up apartment.
There are a long list of pros and cons to being a DIY investor, and a long list of different ways that various folks have chosen to involve themselves in this work, with or without their families.
It doesn’t sound like a bad reason to me. It all just depends on what you want to do. I buy multi family houses, fix them up, then Airbnb them. It’s pretty fun most days, sucks other days, and few days it makes me wonder “what the heck am I doing”
If you have the skillset and time to do the work why not. You are essentially creating your own sweat equity in the home.
as @Mindy Jensen once said... "sweat equity is the real deal". It has worked out well for me so far. Plus, I enjoy doing the work. There is no better feeling when you have created something from your own vision and turn it into equity/cashflow.
For a first project, I would only suggest expecting more work than you anticipate.
@Nick Rutkowski what do you usually buy? Light, medium or heavy projects ?
Medium to heavy... I shoot for medium and I get a heavier work loan than expected. My budget is between 35-40k spent on the whole house.
@Nick Rutkowski Can you explain how the financing works on that please? I'm reading rental property investing by Brandon turner and he talks about that but I don't understand. Do you get two loans? Amd if so how ? And do you have to have that 35-40k up front ?