Can I still make money on fixer upper homes if.....?

Question

I am not a handy man? If I buy a "handy man's" special and have someone else fix it up for me will I still make some money or can I end up actually loosing money?

Answer 1

Its all about finding the right deal. I have made a lot of money flipping houses, and I am not handy at all. I pay to have every inch of the property fixed by contractors. If the property is purchased with enough room, then there should be no problem. If you are new, and un aware of what the cost of a job might be, have your contractor give you a quote before you buy, not after. Also have a Realtor do a cma of what they would list the property at when it is in great condition. I always tell them to not fluff the price, I want the rock bottom blow it out the door price so I do not have to hold on to the home. If you trust your Realtor great, if not get 3 cma's. I flip homes every month , and never lift a finger, it can be done.
The people who say flipping has passes because the market has changed have no idea of what they are talking about. I have been flipping for ever, and no matter the market money can be made if you buy the homes at the right price.
Good luck

Answer 2

The poster above has the right idea. Sweat equity. You only reap what you sow. You are literally giving your profit away, and nine times out of ten, it will leave you tugging at the insides of your pockets when it's all said and done.

It is possible to find a home that is priced low enough to pay someone else to fix it and then resell to make a profit. But these markets are rare right now. Any property that you may find a good deal on, you probably won't be able to flip right away, because a lot of markets are on a slow steady increase, which means it could take a few years or more to see anything subtancial come from your investment, but if you rent it out in the mean time, then sell when it's at a premium, you can make up for the money spent on the handman and make a nice little profit.

There are ALWAYS unexpected problems when you buy a fixer upper. You can get an inspection, hire a handman with the quote he gives you, but there will inevitebaly be something that pops up and costs you money that you weren't counting on spending. And your profit will get smaller and smaller. It's the risk you take. If you don't have enough money to take that risk comfortably, then I would suggest not doing it. Hopefully you will be one of the lucky few that can find one of these dream fixers that will make you rich, and hopefully you won't have to lift a finger (well, until you pick up your big ol check!)

Answer 3

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Answer 4

If you're not good with your hands, then you'll have to be good with numbers. Become a student of the economics of flipping. Go to the library, not just the web.

The only way to make money is to account for every detail. The handyman makes money on flipping because he lowers his fixing costs tremendously.

The handyman has to work harder than you at fixing up the property. You will have to work harder than he does at finding great deals. Make sure that you have a GREAT relationship with a contractor. Always figure in extra time and money.

The number one rule is that you make your money when you buy the house. You should know what your profit will be and what your worst case scenario is before you put in an offer.

If you happen to be in PA, I can help you with financing. Stop by my site at: http://www.pamortgagereports.com

Answer 5

In my experience, I would not even think of buying a "Handyman's Special" unless I had a 200K profit potential. These "specials" always have many hidden, no see um's that are very costly. Major replum's, structural, etc.. Usually the high dollar repairs. Things you don't know about until you remove a toilet or open a wall, etc.
If the profit potential is good. I would have many inspections done. Home Inspection, Termite, Roofing. Better to over inspect than not. Will save you a ton of money in the end.

Answer 6

You certainly can lose money. When you start paying workers hourly wages and the materials, this adds up in a hurry. Generally, when people buy fixer homes, they have skills to fix it, know a close friend or family member that will help or have the money to invest on the repairs.

Savvy home buyers know a shoddy repair when they see one, and if you are looking to fix it on the cheap, in the end you'll get what you paid for.

Answer 7

Well, that is what I do, I never have so much as changed a light bulb myself. However, that is NOT what I am doing now. It is too hard to find bargains with all of these high dollar foreclosures going on.

This is a GREAT time to invest, but only if you can afford to sit on your inventory for a few years. I now only purchase things (homes, duplexes, etc) which I can rent for more then I pay for it.

I am also thinking about building an apartment complex targetted to low income families, but just running the numbers.

Answer 8

Remember, this is a buyers market. If you buy the property at a steep discount - then, yes you have the possibility of making good money. If you buy for retail value, then you probably won't.

Answer 9

initiate at 199k - in case you get an easily furnish for much less, yet greater desirable than a hundred seventy five, take it - if counteroffer is under a hundred seventy five, counter over by utilizing a hundred seventy five with the objective of attending to a hundred seventy five - do no longer forget, sales fee and shutting expenses will in all likelihood be 10-12k subtracted from merchandising fee

Answer 10

Depending on the home, you could make some money, but watch exactly what you spend. Also make sure you know how much you'll be paying in capital gains tax.