How to Make money with Fixer Uppers

April 2, 2010 by · Leave a Comment 

Making money with a Central Florida fixer upper has become a simple and lucrative enterprise, especially with the variety of foreclosed homes and other inexpensive properties available. Since the current real estate market favors the buyer's pocketbook more than the seller's, it is a prime time for investors to buy up fixer uppers.

lake dr 001 (533 x 400)What is a "Fixer Upper?"

A fixer upper is a home in need of some repair. As a result, fixer uppers can usually be purchased at a significantly discounted price. After the purchase, a few inexpensive repairs will usually add enormous value to the property.

If you are trying to make money with a fixer upper, consider the following:

•    Inspect the Home: Make sure that the property is in sound condition, without any major structural problems. Minor repairs should be expected. After all, a fixer upper will inherently require repairs. A cracked foundation, for example, isn't a minor repair… it's a multi-thousand dollar disaster.
•    Location: Price isn't everything. Make sure the home is in a good location with a low crime rate. Take into consideration the area’s restaurants, schools, parks, entertainment attractions, and other amenities.
•    Proximity to Buyer's Home: If possible, the home should be somewhat close to the buyer’s home. Purchasing a faraway home will necessitate long commutes, turning simple home repairs into costly, time-consuming hassles.
•    Potential Renter Interest: The home's seller or tenant will vacate as soon as the title is transferred. Make sure you find a home that will have serious interest from potential buyers or renters. In some cases, you may be able to find a tenant that is willing to live in the home at a discounted rate while it is being repaired. This only applies to properties that are in a state of mild disrepair.
•    Seller Motivation: Buyers should purchase a home from a seller that is extremely motivated and anxious to sell the property. Unmotivated sellers are typically less willing to reduce their asking price and/or negotiate other conditions that would favor the investor. There are plenty of motivated sellers in Central Florida whose homes can be inexpensively purchased.

It isn’t uncommon to find homes in need of repair for at least 30% below market value. After a few minor fixes, these homes can be sold again for a profit. With a little elbow grease, some patience, and discerning eyes, it’s quite simple to make money with a fixer upper in Central Florida.

About Mike

Mid Florida Investment Properties, LLC owner Mike Calvert has been buying and selling real estate in Central Florida for over 18 years. Get a seasoned investor as your partner for a fraction of the profit. We handle the transaction from start to finish!

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!