To Fix up or Not to Fix up, that is the question

You’ve heard it for years now – you can Do It Yourself.  Just a little elbow grease and paint and you’ll make thousands of dollars.

But do you have the time and expertise to do it yourself?  Will it really look professionally done when you’re finished?  If not, you may want to rethink this.

That doesn’t mean a “fixer” isn’t a good investment.  Many times they are.  But you will want to include the cost of the renovation in your calculations.  And you will want those estimates to be accurate.  An error of a few thousand dollars (like you have to put in a new sewer main that you weren’t counting on) can mean the difference between a property that cash flows and one that won’t.

This is where the team you’ve developed becomes crucial.  An experienced contractor can accurately estimate the amount of time and money it will take to put the property in shape.  Your real estate broker can let you know what it will sell for once the repairs are completed or what you can expect to lease it for if that is your goal.

Whether or not to fix up may also depend on the surrounding neighborhood.  Remember the bottom line, you don’t want the best house on the worst block.  Your shining jewel may look pretty tarnished next to the shack across the street.  On the other hand, if you can get in early in an area that is on the way up you can see serious equity gains if you hold the property long enough.

If you have questions or need more information, please fill out the easy form below.