There is one thing to remember when considering buying a house for a “fixer upper.” It’s easier to buy a cheaper house and make it into a nice house, than it is to by a nice house and turn it into a more expensive house. You invest less money and get a better return for your money.
If you’re looking for an investment house in South Florida, there are plenty to choose from.
There are some decisions to make when looking at properties for sale. Where to buy is one of them. If you buy a foreclosed house in a nice neighborhood, then you are hoping the neighborhood will increase the value of the flipped house. However, if you buy a house in a depressed neighborhood, you have to consider what the property value will be worth after you’ve finished remodeling.
When looking for a distressed house you want to find one that is undervalued. Or a property which needs a minimal investment of both your money and your time. You have to approach each South Florida home with a plan in mind. Make a reasonable budget and stick to it. Know how much work you have the skill set for. Because if you can’t do the work, you’ll have to hire someone who can do the work for you.
When reviewing your budget, add 20% for the unexpected expenses, because there is always the unexpected. If you overestimate the amount you need, then you’ll have extra money to invest in your next venture. When debating on what to renovate in order of importance, the most important rooms to do major improvements on are the kitchen and bathroom. You may need to make some structural changes such as new cabinets, floors and counters. This could be a big chunk of your budget, but it’s a well invested one.
Also, don’t skip in the upgrades. The quality of good workmanship can’t be fakds. If you put in shoddy carpet, it will be noticed. Check the plumbing, how much insulation there is and if the electric is up to code. These are important improvements that a potential buyer will ask about.
Curb appeal is also an issue too. You may need to paint the house or even have to put siding on it. The yard may need to be landscaped if the neighborhood is a pricey one. If it’s not, then just mowing the grass and doing any needed trimming will be enough. If the home you’re working on is in a South Florida development, you may have to pay a homeowner’s association fee on top of everything else.
You can make money by investing in a distressed or foreclosed home in South Florida. Contact a reliable realtor and invest in the future.