This is the fourth article in a blog series on fixer upper homes in Northern Virginia. So far, we’ve covered Part 1, Part 2, and Part 3.
Fixer Upper Homes – Finding the Right Deal
- If you’re not going to be a full time investor, but would mainly just like to make some extra money each time you buy and sell a home, try to plan on living in your “flip for at least a year or two while you take care of the renovations. This provides some extra time to allow for more property value appreciation before you sell.
- Try to buy a property in a subdivision that is large enough to where it has a decent turnover rate. If you by a fixer-upper in a smaller subdivision and there aren’t other sales of remodeled properties happening in the subdivision around the same time, the good deal you get on your purchase might temporarily act as a drag on home prices in the subdivision. This is because buyers don’t have enough comparable sales to which to compare your fixer-upper sale.
In a subdivision that has a decent number of sales every year, buyers can always see that there is a clear low range in the comparable sales (your fixer-upper sale) and a clear high range (remodeled property sales). This concept becomes less important if you plan on living in your property for at least 2-3 years, since there will likely be other comparable sales, even in a smaller subdivision, during that time frame.
I’ve hope you’ve enjoyed this blog series on fixer upper homes in Northern Virginia!
Email me at DarrenRobertsonHomes@gmail.com for a free report on the FHA 203K loan. This loan includes not just the money for your home loan, but also a loan that you can put toward your renovations on a fixer upper.