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Question: We’re looking for a fixer-upper, or run-down, distressed home in major disrepair. Are foreclosure homes, bank repos, and short-sale homes a good bet for some quick, "sweat equity", or should we just look for a cosmetic fixer for our first effort into refurbishing a home?
Answer: If this is to be your first project home, we recommend that you look for a property that needs cosmetic repairs only. Leave the major structural projects to the pro’s for now. It’s best for you to gain some experience on a cosmetic fixer for your first foray into home refurbishing.
Question: We want to buy a fixer home, and live in it while we do the work to gain some quick equity. Do you recommend that we purchase a fixer and live in it while we do the work?
Answer: Personal experience has taught us that attempting to live in a home while doing extensive work is not a good idea. The stress of moving into a home and living in it while you do the work compounds the problem, makes the work much more difficult and often much more costly. Additionally, it can be very detrimental to relationships when there are others involved and living in the home during a project of this magnitude.
Question: What are your best recommendations for someone who wants to get started refurbishing fixers?
Answer: Again, our recommendation is to undertake a project requiring only cosmetic repair initially. Once you’ve done one, you’ll be much better prepared to move forward. (This will also allow you to decide if this is something you really want to deal with again.)
Question: How much money can I expect to invest, and how much time will it take to refurbish our first home?
Answer: If you’re planning to do all the work yourself, and have little experience with this sort of thing, we recommend that you attend some basic “How to” workshops to gain the skills necessary before you undertake a project such as this.
Workshops are readily available at most of the larger home center stores, and they’re usually free of charge.
Costs associated with a project such as this must be carefully considered. It’s suggested that you don’t attempt to build a dream house with your first efforts. Depending on the extent of rework required, ten to twenty thousand dollars invested can yield spectacular results.
Plan on saving money by carefully shopping for building materials, using neutral colors; don’t use high-end materials; and plan on your final result to be a nice looking, mid-range home.
Question: We’ve got an opportunity to purchase a 4000 square foot home in need of a lot of work. What is your recommendation.
Answer: Here’s where being a little bit conservative can save your bacon. We recommend that you don’t involve yourself in a large project as your first effort. Better to stay with a smaller home, and allow for possible unexpected costs to permit you to complete your project.
It’s advisable to stay with smaller homes, as they are affordable to more people, and as a result, easier to get sold, or keep rented.
Question: I've heard some talk of regulations governing "flipping" of properties; where can I find out more about this?
Answer: ABC News has an excellent article that you can read by clicking here. The Real Estate Journal offers this informative article on the subject.
The above are just a few examples. For more information on this subject, we suggest a Google search.
Tips On Buying Foreclosure Homes
Information on "Flipping" properties is available at: Flipping Frenzy.com
If you have specific questions not addressed above, just email us at: tmtnw@comcast.net or give us a call..
Wishing you the best in all your endeavors!
Sincerely,
Pete & Jewels Mesaros
The Mesaros Team
Cell: 425.359.8524
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