This is the third article in a blog series on real estate fixer upper investment strategies. So far, we’ve covered Part 1 and Part 2.
Real Estate Fixer Upper – More Strategies
- Try to buy a real estate fixer upper in an area that has had a good number of recent comparable sales. If the property is easy to comp, you’ll be more likely to get buyers willing to pay a good price for it. If there aren’t many comps in the area, purchasing a fixer can actually pull prices down temporarily in the neighborhood if it’s one of the only sales.
- Inside the Beltway is usually considered the safest investment because demand there is generally consistently strong. But I’ve seen people have good success with duplexes in Alexandria outside the Beltway, single family homes in Chantilly, etc. It all really just depends on an in-depth analysis of comparable sales in the subdivision you’re considering.
- When thinking about your returns on a real estate fixer upper, make sure to factor in: closing costs as a buyer (roughly 2-3%), renovation costs, carrying costs (mortgage, taxes, etc), closing costs as a seller (around .5%) when you flip the property, real estate commissions to buying agent’s brokerage (around 3%) and selling agent’s brokerage when you sell. When investor clients have used my services to buy a property, I always give them a huge discount on their listing fees when it comes time to sell.
Read Part 4 of my blog series on real estate fixer upper investing tips.
Have you thought about buying properties in Northern Virginia to fix and flip, but you’re not sure where to start? Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com – I’d love to help you get started with helping you move toward your goals.