The Do’s and Don’ts of Home Investing
Perhaps you’re searching for a budget-friendly home that is in dire need of your special touch and helping hand. Perhaps you are an investor who earns extra income with fixer-upper homes. No matter which scenario applies to you, the purchase of a home in need of remodeling is one that provides you the opportunity to tackle an awesomely exciting project while also securing a great deal on a new home. But before you jump head first into the new property or properties that you find, make sure that you don’t dig a hole and bury yourself in it. A fixer- upper may end up becoming an endless money pit if you are not careful. It is imperative that you choose the homes that you purchase wisely and know what to do –and what not to do- when it is time to give the home your TLC.
The Do’s of Home Investing
Before any money is spent on the purchase of a home, check the infrastructure of the building. You don’t want to invest any money into a home that doesn’t have a solid foundation, sturdy beams, and personality. Before you buy, see a vision of the new home in your mind.
Whether you are purchasing for yourself or as a rental property, there are certain upgrades that you will want to add to the home, using your own personality and touches, of course. New flooring and carpet is desirable by many. If you’re on a budget, linoleum is always an excellent choice. Put great emphasis on the bathroom and the kitchen. Believe it or not, these two rooms are, for many, the most important in the home. Ensure that you have beautiful cabinets with lots of space; modern appliances that improve home efficiency. Updates to these two rooms also increase the overall value of your home.
When purchasing a fixer-upper it is also important that you prepare for the unexpected. No matter how well you inspect a home or how good of a deal you think that you are getting, something unexpected is always going to show its ugly face at some point or another. Whether it is plumbing issues or an outdated, can’t pass inspection electrical system, don’t be surprised when you run into the unexpected. Plan and prepare for this to happen.
The Don’ts of Home Investing
Now that you are aware of a few things that you should do when investing in a fixer-upper home, now let’s take a look at the don’ts. Avoid the following and avoid the hassles that some face when purchasing a home for remodeling.
First and foremost, don’t forget to set a budget. A home improvement project can easily turn into a massive project with an even larger budget attached if you’re not properly planning. When you know the money available to you upfront it eliminates headache and hassle.
Make sure that you don’t overdo-it. You might be wondering how it is possible to overdo it, especially if you plan to rent or sale the home. The answer is easy. If you do more than a buyer or renter is willing to pay you for, you’ve wasted money.
Finally, make sure that you don’t avoid maintenance on the property. When you neglect a property it quickly shows from the outside in, and your project could turn into something far too expensive to touch.