Who hasn’t watched HGTV and dreamed about buying a “fixer-upper”? I think anyone with even a slight interest in real estate has considered buying a property like this because let’s be honest, it looks like fun. The thing is if you aren’t careful you could end up buying something that is more of a nightmare than it is a “fun time”. Deciding to buy a fixer-upper in Kansas City is a big decision and it shouldn’t be taken lightly. Buying properties that need a ton of work can quckly become a nightmare. You might walk into a property thinking it’s just a cosmetic rehab but once you start the work you can quickly realize it’s much more that just cosmetic updates. A house full of knob and tube wiring could cost thousands to rewire. Crumbling foundation…thousands more. Bad real estate investments are time consuming and cause financial ruin for a lot of inexperienced investors. Without the experience and knowledge that successful investors require regarding every aspect of investing in older properties, you could be caught holding the proverbial bag. Bad real estate investments can be a time-consuming, emotionally draining, and expensive piece of luggage. The fear that people have of making a bad investment is real and many times it makes people hesitate and end up avoiding investing all together. Hesitation in real estate can mean the difference between grabbing a bargain or being a day late and a dollar short. Some never begin their investments into real estate, feeling overwhelmed by the possibilities of what could go wrong, due to a lack of experience. We’ll cover what to look for when buying a fixer-upper property in Kansas City.
Hidden Problems
Buying your first investment is exciting. You’ve probably spent hours looking on Zillow at houses, running numbers and preparing to get started. Maybe you even found a house that you think will make the perfect first investment. If you are inexperienced and don’t know what you’re looking for you could make a huge mistake and your investing career ends before you even get started. Buying the wrong property can be a huge hit finacially. You could end up buying a property with thin margins and when those unexpected repairs show up all of the sudden you are losing money on a deal instead of making money. Many experienced investors have made that same mistake, myself included, so it’s very important when you buy a property that you know what you’re getting yourself into. So how do you avoid making those mistakes? First you are going to need to work with professionals to help make sure you aren’t buying a money pit. One of the best things you can do is hire a certified property inspector. The inspector can find those big issues which will allow you to spend a little more time analyzing the deal to make sure the numbers work. Unanticipated repairs can end up causing the time you budgeted for has been surpassed by weeks or even months, meaning you are falling behind schedule, which will end up costing you even more. It is also wise to have a professional appraisal so that you can be certain you truly are getting a bargain for your investment dollar. While it may be expensive to hire professionals to assist you, it could save you quite literally thousands of dollars by learning all about the property before ever making an offer.
Location
No matter if your plans include a quick flip of the property for profit after completion of any repairs or renovations, or finding a bargain to hold, either as your own or as an investment property. If you have spent any time in the real estate industry, you will know that location is the first thing to look for when buying a fixer-upper property in Kansas City. By investing your money in property with as many factors as possible that make up what is considered a good location, you ensure demand for your investment. Because there is only a limited number of properties in any given area, the supply is limited and holds an even higher value. If you are flipping, while the location might not matter so much to you, wise investors understand the long term value of a good location and the lasting power it gives to the amount of equity gained on the property over time.
Repair Expenses and Timeline
Professionals in the construction industry should be contacted to provide an estimate for the necessary repairs as well as any renovations or upgrades. They are experts at knowing what to look for when buyers contact them about a fixer-upper property in Kansas City. They should also be able to provide a timeline of the job, should you have several repairs, you may wish to hire one licensed contractor to coordinate all of the work. it is suggested that you contact at least three professionals to ensure that you are getting fair estimates to make your determination about your ability to afford the property. Should you endeavor to undertake repairs yourself, be certain you are up to the task. Do not bite off more than you can afford to chew, you could become physically and financially exhausted.
A great deal of data is pulled together in order to determine a realistic budget for fixer-upper properties, as well as a complete understanding of the time involved and what that adds to the bottom line. Wouldn’t it be nice to have a professional in your corner, looking out for you? At BD Real Estate Solutions our experts have the experience to spot hidden problems buyers may miss when buying a fixer-upper property in Kansas City. BD Real Estate Solutions has built a network of professionals you can rely on in every aspect of the real estate and construction industry. At BD Real Estate Solutions we help investment buyers determine which repairs are worth fixing and which are too expensive every day. Our job at BD Real Estate Solutions is to help you make your real estate investment dreams a reality. Why not start reaching your investment goals today? We welcome you to send us a message or call BD Real Estate Solutions at (913) 708-1185 with any questions you may have, with no obligation.