Though many new home buyers prefer to purchase a house that is move-in ready, others prefer a fixer-upper. Luckily, Salt Lake City is great place to invest sweat equity, because homes are in high demand and hold their value. If the fixer-upper route sounds appealing to you, there are a number of things that you will need to do before you make any moves, such as:
1) Prioritize Location
You can fix up a house but you can’t pick it up and move it (okay, it is possible, but not practical). One of the main reasons people prefer to take on fixer-upper houses is the potential return on investment that they can enjoy. By buying a house that is falling apart and restoring it to its former glory, you can potentially make a lot of money. However, in order to do so, you will need to make sure that the house is in the right location. You will not see much return on investment if you renovate a home in a neighborhood that is full of poorly maintained homes. A quick giveaway is to look at how well other owners are maintaining their landscaping. Tip: If you’re shopping in winter, use Google Map Street View to see other seasons.
In addition to the neighborhood, pay attention to the street traffic and neighboring properties. Busy streets pull down value, as do loud or hectic commercial properties.
Try to find the one fixer-upper in a well-maintained neighborhood with relatively quiet streets and revamp it. Parks and green spaces nearby add value as well. You will see much better returns by doing this.
2) Complete a Thorough Inspection
Before you decide to purchase a fixer-upper home, it is absolutely vital that you know the extent of the work that will need to be completed on it. If you are expecting to simply repair and re-do some cosmetic aspects of the house but end up having to fix some large structural issues, your budget will disappear in a hurry.
If you do not want to tackle large structural projects, make sure that the bones of the house are in good working order before moving forward. While renovations always come with surprises, a good inspection can help you avoid most of them.
I also recommend having methamphetamine and Radon testing done along with a sewer line inspection.
3) Hire the Right Specialists
If you do choose to take on a bigger project, it is important to know what aspects of the work that you will be able to do on your own, and what you will need to hire an expert for. While you might be able to fit some new sockets, you should not try to rewire the whole house on your own.
For important parts of the home such as the roof, wiring, plumbing, and foundations, you should always hire a qualified specialist. By doing so, you will be able to ensure that everything is done correctly and is up to code. For more on which projects are good DIY candidates, read my post, “DIY or Hire?”
Although taking on a fixer-upper can seem like a tough challenge, these are solid first steps towards finding a home to restore.
Interested in learning more about investment properties. As an investor myself, I’m happy to share my experience and knowledge. Call or email me today: 801.983.2519
