The Money Pit: Fixers vs. Total Rehabs
Fort Lauderdale, Fl
Considering buying a home that needs a little TLC? It can be a worthwhile investment—if you know what you’re looking for. Homes that require renovation run the gamut between fixer-uppers and total rehabs. The difference? Fixers tend to lean toward cosmetic upgrades, whereas total rehabs likely need a structural overhaul.
If you’re unsure which category a prospective property falls into, a good rule of thumb is to determine its livability. If you can safely and comfortably live in the home while renovating, it’s likely a fixer-upper. For total rehab homes, the opposite is true.
Don’t count out a rehab yet, though. Many investors see serious profit when renovating a home top-to-bottom—rehab homebuyers may find themselves in a less competitive and less expensive market with unique funding options, often making the reward greater than the risk.
Whichever direction you head in, keep in mind both types of properties should be evaluated by a qualified inspector. He or she can provide a list of potential repairs and replacements, helping you gauge the resources you’ll need to commit to the project.
Source: RISMedia’s Housecall
Reprinted with permission from RISMedia. ©2015. All rights reserved
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