Assessing Potential: How to Spot a Good Fixer-Upper Investment

You can make money by reselling old real estate after renovation. Some transactions with cash home buyers can bring up to 60% profitability, while others may not take place at all, and then the money will be stuck in real estate. This looks like buying a house in very poor condition, then renovating it and reselling it at a premium. The main thing is that the entire process, from purchase to sale, goes very quickly.

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Image by jarmoluk from Pixabay

Fixer-Upper is only available on resale homes. To make money on resale, you need to buy at a significant discount. However, the price below the market average for comparable houses is only one of the selection criteria. It is worth paying attention to:

Evaluation of the Profit

The renovation budget is usually limited by the investor's strategy, which involves calculating profit. If you deviate from the plan, your income will be lower at best.

Typically, investors use the following calculation formula: the maximum purchase price should not be higher than 70% of the price after repairs (from which its cost is subtracted). "Freshly renovated" does not mean attractive to the buyer. The house should look modern and cozy. Therefore, it is necessary to be aware of interior trends - not only colors but also finishing and furniture.

If you decide to urgently sell your house, take advantage of the real estate purchase services offered by Christian Home Buyers on mutually beneficial terms. Urgent real estate purchase will allow you: