is it a good bussiness venture to buy rundown homes than rebuild them than reselling them double the price?

Question

I was thinking of buying and reselling a homes but afraid of cost to fix them up

Answer 1

Generally, when you say 'run down' houses, I would guess you're considering a run down house in a run down area.
If your intent is to flip the house after repairs, buying a run down property is in no way a solid thing to 'do if the property is located in an area that's been labelled run down. After purchasing the home, paying to do considerable repairs to bring it up to code and then turn around and sell it in an 'unstable' location, you're more likely to walk away with a deficit rather than a credit. Why not consider buying an average home in a better neighborhood. Refurbishing an average home in a good neighborhood makes much more sense that what you might be considering.

Answer 2

Allot will depend on location, and what skills you have in order to do the work, because if you have to hire someone, you will not make that much, especially in todays market. Location is important because of the average selling price in that area. Lets say you bought a run down for 25K invested another 20K in fixing it up but the average price for that size type of home is only 40K you just took a loss.

Answer 3

With all the house flipping shows on TV, there is a bunch of people looking to do what you describe, which is driving up prices of prospective homes. And it is SO unlikely that you can do this successfully without a working knowledge of construction.

Answer 4

Unless you have access to a lot of cash - this will be a hard business for you - especially if you don't have home repair knowledge of your own