Whether you’re a first-time real estate investor or you want to get the best possible deal on a new home, the temptation to purchase a fixer-upper is more than many homebuyers can resist. While buying a fixer-upper is a great way for homebuyers in Rhode Island to save some money, there are a lot of factors to consider. Here is a look at # of them.
Where will you live?
Obviously, you only need to answer this question if you plan on purchasing a fixer-upper to live in. If you plan on living in the home during rehab, you will have to deal with noise, dust, and other issues.
Expecting the unexpected
If you’ve seen reality TV shows about people investing in residential real estate, you may assume that everything will get done quickly. That’s probably not the case. Unless you have a large crew of people to handle the remodel like those reality shows do, you should plan on the process taking longer than expected, running into unexpected costs, and other issues.
How to budget for a fixer-upper
You need to have a financial plan before you even start looking at fixer-uppers. Remember, you not only have to buy the house, but you also have to pay to fix it up. An agent from Redfin, one of the biggest names in the world of online real estate, encourages buyers looking for a fixer-upper to add about 20% to their budget so they can tackle any unexpected financial issues that come up.
Whether you plan on living in your fixer-upper or intend to use it as an income-generating property, there is much to consider. Keeping these tips in mind can help ensure that you don’t put yourself through any more stress than is necessary.