Some people like a home that’s move-in ready, while others don’t mind earning a little sweat equity. There are many benefits to buying a fixer-upper, but how do you know when your rehabilitation project not worth it at any price?
It’s in a Bad Location
Sometimes, a home is available at a bargain price because of where it’s located. If it’s in a high-crime area, you have to consider the ability to attract a quality tenant or the school system and personal safety if you’re planning to live in it with your family. Other potential value zappers are homes that are in flood or crash zones, homes located near sewage treatment plants or other potentially hazardous areas and neighborhoods that are in decline.
There are Major Structural Defects
There are renovation projects and then there are money pits. Cosmetic defects are easily overcome. However, if the foundation is crumbling or there are serious problems with the underlying structure like rot or termites, the cost of repairs may not be worth the initial savings.
The Systems are Malfunctioning
Much like major structural problems, having to replace essential systems like plumbing or electricity may reduce the return on your investment. Minor upgrades are one thing, but if the main components that make a home livable are severely outdated, damaged or missing completely, take a pass on the property.
There are Too many Repairs Needed
One or two repair or improvement projects are to be expected when you’re buying a distressed property. However, if you’re going to have to repaint inside and out, install a new roof and make numerous other repairs, it’s probably not worth the investment of time and money. This is especially true if the property has been condemned, unless you’re practically getting it for free.
If the Property is in an Unfriendly Community
There are many neighborhoods in decline where buyers can get incentives and tax credits to come in and rehab the homes. Then, there are municipalities that make you jump through hoops, creating impossible standards or making it difficult and expensive to get the proper permits and permissions. Too many obstacles to upgrading the property will just make your renovation that much harder.
Whether you’re trying to buy your first home or you’re looking into investment properties in Ohio, a fixer-upper can be a worthy investment. Following the above guidelines will help you decide when to buy and when to pass. You don’t have to do all the work yourself when you choose a company that specializes in home improvement projects Columbus.
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