Once all of that's done, you'll need to decide if you're paying cash to rehab the property or if you're going to need a rehab loan to facilitate this. If it's a residential 1-4 unit property/condo, you can use a rehab loan (which one depends on the size and scope of what you're doing and who's selling). These properties can be either owner occupied, second homes or investment properties with slightly-above market rates (low to upper 4's as of when I write this depending if it's owner occupied or investment).
Here's a link to another Trulia post I did about rehab products (long read, grab a snack :)
If you have questions that aren't addressed here or in my link, feel free to email or call for a faster response, otherwise just ask here.
good answers below, make sure you get the home inspected thoroughly by qualified inspectors and general contractors, and get your own appraisal. Financing can be an issue but the FHA rehab loan is an option
my website has a link to a mortgage broker that can help you get pre-approved for a loan as it will make your offers stronger.
Buyer 50%-60% Cash Rebate / Seller 50% Commission Discount
Quality Full Service! Work directly with the Owner/Broker.
CFS Mortgage - http://www.cfs203k.com
Christopher Wells Construction
Best of luck with your fixer-upper, it should be an exciting and educational experience.
Also look for mold.
Loans for renovation projects are more difficult to come by than traditional loans, though credit is loosening somewhat. The amount of work left after you buy a fixer should have a very direct relationship with your budget!
A good agent will work with you to determine what type of property best suits your needs and has the potential to be a great home after it's restored or even improved beyond it's original design.
Thanks and good luck. I work with buyers seeking this type of property frequently so feel free to contact me if you have any other questions.
Once the cladding and finishes start coming down that is when the real meat of the reno is going to reveal itself, and a lot of times it can be a lot worse than originally thought.
If you have any other questions, please feel free to ask!
Buyer’s Specialist | DRE# 01887446
Better Homes and Gardens Real Estate
2095 Rose St, Ste 100 | Berkeley, CA 94709
[t] 510.517.7238 | [f] 510.780.2110
The most expensive work on fixer uppers tends to include work that will be necessary for areas including: Foundation, Electrical, Plumbing, and Roof.
If the space is simply dirty, has ugly carpet, or is outdated in style, the actual house may still be a strong investment for improvement over time.
Isaac Wigley-Realtor BHG Mason McDuffie http://www.sfpropertysearch.com
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted. truonly
There are so many issues here in San Francisco that the most important things are to have very detailed inspections and a broker/agent who deals with these properties and knows what's involved. We have bought many properties and fixed them up and then sold them, the latest is a total gut job on a pac hts 2 unit with all new everything. I can not only tell you what to watch out for but costs as well. If you like I could give you a tour of the place sometime because the lower is gutted and the upper is finished so you can see up close what's involved. Contact info below if you would like to take advantage of that offer.
Lance King/Owner-Managing Broker