With this generations obsession with Pinterest, social media, Netflix/Hulu, and HGTV it is no surprise that the show Fixer Upper has appealed to many people. The television series show the public buying a home and completely renovating the home on a budget is easy! It is safe to say many people pin home designs on Pinterest of their dream home in hopes of getting their perfect Fixer Upper one day. The only problem is here in Indiana we don’t have Chip and Joanna Gaines to help us find the perfect fixer upper and work their magic with a budget.
The reality of a fixer upper says it all within the name. It is a fixer upper and will require a lot of work! All fixer uppers are different and have different issues. So if you are new to this world and have no idea how to determine if a home is a great investment or not here are some things you should consider and be aware of!
- Do a cost benefit analysis to determine if the home will be an investment rather than a money pit.
- Check for wiring issues with the electric. If the wiring is outdated this can become a costly fix and it becomes a safety issue.
- Weird smells can mean plumbing issues or even mold. It’s best to have a plumber take a look at all the pipes if there is a weird smell in the home.
- TPG has a saying, if you can smell it, we may not be able to sell it!
- An outdated kitchen and bathroom is common, especially when buying a fixer upper. Renovating a kitchen and a bathroom are on the list as number one and two of the most expensive rooms to renovate in a home. If you can renovate the kitchen and bathroom without having to move sinks and tubs this already saves a lot of money! This means plumbing will not have to run new pipes and rid of others. There is a difference between getting a new sink or tub and completely moving it!
- If you are new to fixing up properties, rely on the professionals to help you. Contractors have likely seen the worst of the worst and your “problem” may not actually be that big of a deal to the pros! Or if you wing it without them, it could be a costly repair that eats into your profit.
- When investing in rehab homes, TPG has another saying (we have a bunch!): You make money when you buy, you get paid when you sell! Meaning be very aware of your expenses both during the property acquisition and along each step of the way! PS: Don’t forget to factor carrying costs like insurance, taxes, utilities and loan interest.
- It can be difficult to find a great property to fix up. The specialists at TPG can help locate and advise on which potential properties may fit your goals.
- There are also some tax benefits and pitfalls to be aware of. We can connect you with great local accountants so your decision doesn’t end up costing you a small fortune.
- Most importantly: HAVE FUN! Todd and his wife Lisa spend a lot of time working together on their rental and rehab homes. Todd says you sure do find some interesting things!
One thing is clear, fixing up a home is never as easy at tv makes it look! The Paxton Group has helped clients with HUNDREDS of fixer uppers. Yes, Hundreds! Todd and now two other members of TPG are actively rehabbing homes and have separate businesses in real estate rehabs/rentals. Thinking of a fixer upper? Let the people who have helped and actually been through the mess before help you.
It could prevent a lot of headaches that the cameras don’t show you 🙂