If you are considering purchasing a home that needs a little renovating as an investment, then it really could be a good business opportunity. Ultimately, you should bare in mind that there different degrees of renovations. Some houses may require more renovating than others, and this is ultimately the deciding factor of whether or not a specific property is a good buy or not.
There are differences between a house that is a fixer upper and one that needs total rehab in order to increase its value. A cosmetic rehab is basically a home that is structurally sound, and only needs minor cosmetic changes in order to bring it up in value. Ultimately, this means things like repainting, new carpets, or refinished floors. So it’s not a lot of work and most of it is do-it-yourself tasks.
When it comes to full rehab projects, a lot more work and effort is involved as compared to a cosmetic rehab project. Ultimately, it could include anything and everything from replacing electrical components and plumbing to replacing the roof and repairing water damage. So it does include quite a bit of heavy lifting. In cases where the structural integrity of the building has been compromised, it would include hiring contractors and getting permits and so on. So not only does it require a whole lot more work, it’s also going to require a lot more money as well.
When it comes to deciding whether a specific property is a simple fixer upper or a full rehab project, there are a few things you will need to look out for. Ultimately, the best way to determine whether a house needs a full rehab or not is by determining whether or not you can live in the house without doing certain things. So if you can live inside the house safely and comfortably without investing in electrical upgrades or plumbing renovations, then you should consider it a cosmetic rehab. However, if you will need to do a lot of work before the property is even inhabitable by anyone, then you definitely know that it is a full rehab project.
In most cases, investing in a property is a risk. However, it doesn’t have to be that way. Prior to purchasing any property, you should hire the services of an inspector to have the entire property evaluated and let you know exactly what needs to be done and what doesn’t. This way, it will give you a better understanding of whether or not the property is worth investing in. Ultimately, it will also depend on the amount of float or money you have to invest in renovations. So if investing in a specific type of property is going to cost you too much or if it is too much of a risk according to the inspector, it is always best to steer clear of these types of properties. Ultimately your investment should be able to work for you and if you can’t see that happening, then it’s better to leave it out altogether.