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Buying a home that is a fixer upper is a great way to make money. However, it is not for everyone, and there are many things to consider before purchasing one. If you are thinking about buying your first fixer upper, I recommend you look for one that is 15 to 20 years old and one that is in need of only cosmetic or minimal repairs. Cosmetic or minimal repairs could range from just a fresh coat of paint, replacing old and outdated carpet and linoleum, to updating the kitchen and bathrooms. Starting out on a smaller scale will allow you to get a feel for, and find out what doing a fixer upper is all about. This way you can decide if this is something you actually want to do. If you wereto do a major rehab where the whole house needs to be gutted, you might run into all kinds of problems that you are unable to handle and tie up all your time and money. When you start to consider what areas to spend the most money on repairs, remember the kitchen and bathrooms sell the home. These are the two most important areas where you will want to spend the majority of your rehab budget. This is also where you will get the highest return on you money. Keep in mind that this is an investment property and you will not be living there, so you will need to choose items and colors that will appeal to a wider range of buyers. Before you get started, you will need to determine what needs to be replaced, what can be restored, and what can be repaired in order to bring the home up to date. When deciding on how much to spend on upgrades, you have to take into consideration the area the house is located. You want the house to look like the nicest one on the block when you are done but if you overspend on upgrades for the area, you will not get your investment back. In the kitchen, you will need to update the lighting from as minimal as buying a new chandelier to replacing panel lighting with recess lighting. Replace appliances that are not working, mismatched and outdated. When it comes to the floor, you have many options. You might consider replacing it with tile, wood, or laminate flooring. If it already has wood flooring, you can save a lot of money by having it refinished. There are many options to repairing or replacing countertops. Replacing the countertops with tile or granite will give you the best return on your money. You may also consider using a pre-fabbed laminate countertop that will fit right over the old one. This will save time and money. Another way to save time and money is to have the cabinets resurfaced if they do not need to be replaced. In the bathroom, you will need to update the lighting and almost certainly have to replace the sink, vanity and toilet. The floor will also need new tile or linoleum. When it comes to the shower, there are many options to consider. You can choose from as simple as installing a pre-fabbed fiberglass insert or resurfacing, to doing a whole complete tile job.Remember to keep your first fixer upper simple. Set a time frame and budget and try to stick to it. Do not overspend on upgrades and always put the most money in the kitchen and bathrooms. Keep the colors neutral and always pay attention to the little details. They may seem little to you but could be very noticeable to a potential buyer.
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