Whether you’re new to house flipping or a seasoned pro, there’s always more to learn when fixing up a property. In this segment of The Marc and Mandy Show, expert custom designer and builder Paul Lafrance gives advice for what to know when buying a fixer upper. To hear what he has to say, check out the video above or keep reading for some pros and cons to buying a fixer upper property.
PROS:
If you buy a fixer-upper and renovate it, there’s a large potential for profit. This is because the home will appreciate faster than the general real estate market.
Along those same lines, it’s a chance to save money, so long as you account for cost of renovation after purchase.
Buying a home you’re intending to fix up also gives you more flexibility in terms of location. This bodes well for first-time homebuyers who can’t afford their dream home in their dream neighborhood.
Fixing up a home yourself also gives you freedom in terms of design and customization. In other words: you don’t have to live with the seller’s choices.
CONS:
You might encounter foundational issues, such as leaks or cracks. Repairing foundational issues can be costly and stressful.
Generally, speaking renovation tends to be expensive, even if the foundation of your home is intact. You’ll want to account for hundreds of dollars per month over and above your mortgage payment.
Whether you choose to go the DIY route or hire a contractor, renovating is expensive, stressful, messy, disruptive, and very time- and energy-consuming. You may only want to take a fixer upper project on if you are reasonably handy and don’t mind living through the renovation stages.
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