Home Buying in Detroit>Question Details

Jesse Sablan, Home Buyer in 97217

what to spent on fixer?

Asked by Jesse Sablan, 97217 Sun Sep 9, 2007

Help the community by answering this question:


Hello Sablan. When you buy a fixer you want to find out how much you can expect to sell it for after the remodel. A real estate agent can help you with that by giving you information about sold comparable listings. In the current market, you want to be careful, because you have to take depreciation factors into account. You also have to consider the cost of buying an selling as well as the cost of financing.
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2 votes Thank Flag Link Sun Sep 9, 2007
Ute Ferdig -…, Real Estate Pro in ,
Hey Jesse,
One thing is for sure, a good flip is hard to find. Detroit is a tough market. Like Gary said some of those homes are in real bad shape.
The very best book that I have read on flipping house is called "Flip" this book will give you step by step instruction. If you fallow the book you can`t go wrong. Below is a Link to Amazon
Buy the Book Jesse
Good Luck
1 vote Thank Flag Link Mon Sep 10, 2007
Mr.P, Other/Just Looking in Arizona
I recently came across one more rule of thumb. If you're looking for a property to fix up and re-sell, you shouldn't pay more than 70% of the projected completed value, less the costs of improvements.
0 votes Thank Flag Link Wed Sep 12, 2007
Jesse, A buyers market mean there will be fewer offers on a home. If the home is an REO property (foreclosed and being sold by the bank) they operate by committee. Some will discount price, but not when they are first placed on the market.

Yes, you can offer less, if the home is worth less than the asking price.
0 votes Thank Flag Link Tue Sep 11, 2007
Is nowadays depress housing market affects my offer on asking price?
0 votes Thank Flag Link Tue Sep 11, 2007
Good tip Patrick,.
You have gotten good ideas. The first thing you need is a budget, you need to factor in repairs that may need to be done. How will you get these repairs done? Will have cash or will you need to finace this in. Flipping has been a great source of income for many people. Check to see what current sales are like in the area you are interested in. If sales are slow, or inventory is too great, it is not the right time to flip. It would be better to use as a rental income property until the market shifts. Just a thought.
0 votes Thank Flag Link Mon Sep 10, 2007
Never more than the homes in the immediate area with like amenities. Never more than your homework tells you - and never more than your well prepared budget can absorb. Making concession for "unknown" problems that are SURE to pop up out of nowhere!
0 votes Thank Flag Link Mon Sep 10, 2007
Jesse, When looking for a home needing some repairs you should find out what the price homes are selling or renting in the past 3 months. Determine what MINIMUM profit margin you want and budget based upon those numbers. When selling, there will be Title, State and County fees of approximately 2.5 percent.

If you rent and use a property manager last year they started at $250 per month plus costs incurred.

If your question is, how much are fixer uppers in Detroit, homes are available starting at $5,000. Of course these may not have doors, plumbing, or siding because of thieves.
0 votes Thank Flag Link Mon Sep 10, 2007
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