Updated about 6 years ago on . Most recent reply
Things to stay away from when buying a house......
So when it comes time to buy a house (I'd like to find a fixer-upper and rent it out) what are some things I should keep an eye out for? Maybe some major do's and don't's. I'd like to see how an experienced investor looks at certain things when buying a house. Obv, there are some investors out there that don't mind having major renovations when looking for a house, BUT, since I'm new and don't have a boatload of capital to throw into a house I'd like to hear some ideas of how I should approach deals and what to look for.
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It all depends on your knowledge and risk tolerance. I’d never buy a fire damaged home (I don’t have the contractors nor knowledge) but some people do quite well in that space.
But in general, you want to stay away from properties with issues with ‘unknown’ resolutions. For example, if a kitchen needs new cabinets and countertops, you can go to any store, pick some stuff out and get a price for materials and installation. Hard work - but easy enough. Compare that to a mold/foundation/septic issue. You can’t just call someone up and get a price. It depends on 100 different things and even once you start working on it, there may be another 100 things that make it harder and more expensive.
This stuck with a house that needs carpet, paint, maybe some other touch ups. As soon as you start opening walls, your costs, timeline, and aggravation levels can skyrocket!