Answers (6)
- ProfessorBaron
- Contributions:308
Rarely do fixer uppers sell at a big enough discount to compensate for all the costs of fixing them. Quite frankly because new investors (and experienced ones too) have no idea on how much it really costs and the time it takes to rehab a home. You just can't imagine the outrageous costs to do it. And rarely are people actually able to flip properties for a profit - especially in this market. Sometimes people get lucky, but don't worry it won't be you!
You can add value to a property by doing a rehab, but usually the value will not increase as much as it costs to do the rehab...so beware. Plus you have carry time and substantial transaction costs on both sides, plus the opportunity cost of your time...and it will be significant time if you buy a fixer.
Many a speculator has traveled that road only to never buy real estate again. Skip the get rich quick schemes. If you want to make a profit and get wealthy from real estate buy nice moderately priced rental properties for the long haul.
You can add value to a property by doing a rehab, but usually the value will not increase as much as it costs to do the rehab...so beware. Plus you have carry time and substantial transaction costs on both sides, plus the opportunity cost of your time...and it will be significant time if you buy a fixer.
Many a speculator has traveled that road only to never buy real estate again. Skip the get rich quick schemes. If you want to make a profit and get wealthy from real estate buy nice moderately priced rental properties for the long haul.
- Dunes....
- Contributions:3876
Your money, your business transaction, your investment, your responsibility....YOU look...search...research..look...search...research
Otherwise you are not a New Investor you are just another Gambler
- Michael Walker, "Michael Walker"
- Contributions:173
It's called a buyer's market for a reason...because it's a great time to buy. You should be able to find an agent that can help pick out a property that has hidden value. A property can sometimes be brought up to date that will resell at a higher value. Just be sure you have a backup plan in case you can't resell and will need to rent it out instead.
- Michelle Rottach, "REMAX Agent in IA"
- Contributions:360
I would start at what price point is selling in your market and try to buy in that range. Then narrow it down to the most desirable schools.
I suggest you get a good buyers agent that is familiar with your area. They will be able to tell you the average days on the market, number of months of inventory that is available and what prices have done in the areas you are looking at.
The bottom line is you still have to buy it at the right price to make a profit. A buyers agent can give you the data to make an informed decision.
I suggest you get a good buyers agent that is familiar with your area. They will be able to tell you the average days on the market, number of months of inventory that is available and what prices have done in the areas you are looking at.
The bottom line is you still have to buy it at the right price to make a profit. A buyers agent can give you the data to make an informed decision.
- Real Estate Investments, "Marco Santarelli"
- Contributions:318
Are you looking to rehab the property because you want to "flip" for quick cash, or are looking to "buy and hold"?
The answer to that question may affect the answer to your question.
The answer to that question may affect the answer to your question.
- Marie Souza Team, "MarieSouzaTeam"
- Contributions:293
The best thing to do is start doing research. Find out what homes have sold for, the condition they were in & how long they took to sell. It may be wise to get a good Buyer's agent to help you with this, since they can get into the MLS & tell you where a good location to buy now would be based on what has sold recently.
How do you find the right market to buy in?
Im a new Investor, looking for our first investment property. We are looking to do a Rehab and make a profit but first we have to be able to find the area in our city that has property selling. My main question is How do I find the hot areas inside of the market that I want to invest in?
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