Some people just love the idea of getting an older home or a “fixer upper”. They love the idea that they can purchase a property for much less than market value put some hard work and a little money into it and after they have an nearly new home built from their own specific criteria that is worth more than they paid for it (in most cases). Whether you chose to keep the Kissimmee home as your own getaway retreat, rent out for an annual return or sell for immediate profit this project usually works out to be a good idea. However renovating a home is a not a hands off job and will take money, planning and some of your own sweat and tears to be completed and to be profitable
First things first do the math. Figure out how much you are willing to pay for the Kissimmee property itself. Do this by adding up the total for the needed renovations. When doing this part always include the professional advice from a home inspector if the house needs significant structural improvements, many real estate experts recommend avoiding it altogether. That’s because major repairs such as plumbing and electrical system overhauls, foundation upgrades, and extensive roof and wall work — are usually “invisible” and hardly ever raise the value of the house enough to offset the cost of the renovation. Make sure to include in the total for the renovations costs for labor, supplies and a little extra for any unexpected extras or unforeseen problems. Next, subtract that from the home’s likely market value after renovation based on comparable real estate prices in the neighborhood. The total is a good assumption as to whether the house is priced right for your project at hand.
Secondly take care to pick the projects that you chose. Extensive projects or large scale foundation/structural work like the others listed above often go unseen and our unlikely to raise the value of your house much. Instead choose projects such as paint touchups, drywall repairs, floor refinishing, which generally cost much less than what they return in market value. New lighting fixtures, doors, window shutters, and siding, as well as updated kitchens and bathrooms, are also lucrative improvements.
Thirdly make sure that you have the time needed to do the renovations or if having someone else do them then the time needed to supervise the jobs properly. The most cost effective is to tackle as many as the projects needed yourself. Get the kids involved; ask friends or family that may specialize in one of the areas to help or offer suggestions and advice. When needed do your research to reliable competitively priced professional to do the job for you but take the time to supervise this from beginning until completion.
So before you fall head over heels in love with a “fixer upper” or the idea of turning an old home into your dream Kissimmee vacation home ask yourself these very important questions, how much will I spend, is the amount of money needed for the necessary renovations available and do I have the time needed to see the project through to competition in a reasonable amount of time. If the answer is yes then take the leap. Buy that old house or that fixer upper and go for it.
We hope to earn the opportunity of helping you achieve your investment property goals this year. To set up a free, no obligation investment property consultation with us please use our scheduling tool or contact us directly at 866-422-6191 and if you have enjoyed this article please consider subscribing to our blog and stay updated on future information.