With so many "distressed" properties on the market, there are many that look enticing to buyers but are not great investments. The reason, you may get it for a steal but if you have to put thousands into the place before you even move in, how good is that investment? Here are some of my favorites lately from the house tour circuit:
1) no kitchen in the house, not just no stove, no flippin' kitchen, that is actually becoming more common
2) Warning signs indicating that the foundation is compromised, "enter at your own risk"...my advice, don't even enter the building, just move on...better yet...RUN
3) Water damage...this is a big deal because to fix it usually involves extensive demolition which has a big price tag. Water damage has a tell tale smell to it, even if you can see the mold you will be able to smell it the minute you enter a property
Best bet for buyers, if fixer means paint and carpet maybe some light fixtures, go for it! If it involves immediate remodeling jobs, unless you have the cash to spare, avoid these properties. If you do decide to go for it, run the numbers. If you buy the house for 250K but have to put 200K into in after closing and the neighborhood is selling around 350K...bad investment. Your Realtor should be able to provide those kind of analysis numbers for any given area.
Happy Hunting!
No comments:
Post a Comment