HGTV has inspired many to purchase homes for cheap and restore them, but they have also over simplified the process a bit. Flipping homes is on the rise, but how do you know if snatching up a fixer upper is right for you? Here are some pros and cons of buying a property that needs some work.
Pros:
- Making a profit: If you’re looking to resell after you’re done flipping, buying a fixer upper could be a great option! By getting the home for cheap and restoring it, you can often sell it for much more than what you paid for it.
- Customizing the home: Depending on the state of the property, there is likely to be a lot of work needed. That may be a con to some, but to flippers that’s a huge pro. Completely renovating a home can be the perfect way to express your creativity and make your home look like a custom-build.
- Making it yours: If you choose not to sell, not only did you get a home for a great price, but you also have a house that is completely your own.
Cons:
- Time and money: While you can turn a profit from a fixer upper, the time and monetary investment may leave your profit less than what you hoped for. Some properties come with unexpected expenses that may leave you in the red.
- Living in construction: If you choose to live in the space while you renovate, you’ll be living in a construction zone for as long as it takes to get done. This can lead to feeling displaced and frustrated. If you are able to live somewhere else, you may end up paying two separate house payments, which can add up very quickly.