Foreclosure in Anacortes>Question Details

Connie Moula…, Real Estate Pro in Anacortes, WA

What do you think about homes that are fixers & need work? If they were priced below market would you think of buying it and fixing it up to

Asked by Connie Moulaison, Anacortes, WA Tue May 18, 2010

flip?

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Depends on the math. If I could buy it cheap enough to justify my time and energy in fixing, and I was confident that the home would sell quickly, I might. It really depends on how much fixing is necessary, how much I could do versus hiring and if I thought that was the best use of my time.
Assume market value, subtract the cost of repairs, carrying costs and headaches then decide how much you want to make on it. If you can buy it at that price or below, give it a shot.
1 vote Thank Flag Link Tue May 18, 2010
Connie,
Dan has it right. It is simply a math problem. Figure out the value of the property fixed up, subtract what it would cost to have a licensed contractor fix it up. Subtract that, and about $20k from the price and that is about what you wan to pay. If you can do that, buy it if you want and it will be easy to sell at that point.
0 votes Thank Flag Link Tue May 18, 2010
This is something that many investors (myself included) already do. Of course the numbers will have to work as Dan stated.
0 votes Thank Flag Link Tue May 18, 2010
I don't think there is anyway to answer this as it is based off each individual property. The cost repair vs value method would have to be evaluated after a thorough inspections. Not to mention location.....
0 votes Thank Flag Link Tue May 18, 2010
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