Posted on: 2 November 2018
Finding a good fixer-upper (good in terms of price, location, and the necessary repairs) is not always easy. Therefore, if you are looking for homes for sale and you find such a home (even if you weren't looking), you should consider buying it if you have the ability. Here are some of the things you may be able to accomplish with a bargain fixer-upper.
Buy And Rent It Out
A fixer-upper can give you good passive income if you go about the purchase right. In this case, you just spruce up the house and put it on the market for renters. For this to happen, however, you should ensure the following:
- The property is located in an attractive location for your potential tenants
- The property's layout or configuration would be attractive to your potential renters
- The potential rental income would be enough to pay all the expenses and give you some profit
Buy And Sell It
If you don't want to deal with the hassles of being a landlord, then you can just buy the property, fix it, and sell it at a profit. This is what is commonly known as flipping, and you can make handsome money from it if you go about it the right way. To make a profit in this case, you must first ensure that the property's defects are minor and won't cost you a fortune to fix. Ideally, the defects should be merely cosmetic. After you have confirmed the extent of the defects that need fixing, you can then negotiate for the lowest possible price to increase your potential profit's margin.
Buy, Hold, And Fix
A fixer-upper doesn't have to hold an immediate appeal for it to make a good buy. If you can see some potential for the property somewhere down the line, then you can still make some money from it. Maybe the fixer-upper is located in a neighborhood that has taken some beatings in the recent past but you are seeing a rebound around the corner. In this case, buy the property, fix it, and hold it until its value appreciates to a level that can make you a handsome profit.
Buy And Live In It
Of course, you can also buy a fixer-upper as your next home if it checks all the boxes for your next home. In fact, if the defects are not that serious, you can buy the home, move into it, and fix the defects bit by bit to lessen its financial impact on you.Share