When looking for a home to invest in or remodel to one’s liking, it’s always good to seek out homes that need some extra love and care. Most home buyers are looking for homes that are in top shape. For homes that have some problems, it can be far harder to sell, especially in a buyer’s market. Putting in fairly low offers on these homes can land the buyer a cheap house with excellent potential.
For the standard home buyer, any type of damaged foundation is likely to send them fleeing from the scene of the home. It could also be a potential problem with lenders, as well. For something as simple as a crack, cracked foundation repair can have the home resting soundly, as if the crack never occurred. However, it is a great opportunity to make an incredibly low offer especially if the home has been on the market for a while.
Leaking and Old Roofs
Replacing a roof can be extremely expensive. Many home buyers have no interest in taking on a home that will require a new roof shortly after the financial strain of purchasing the home. Leaking roofs can also cause problems with the interior of the home, especially if the leaking has been neglected. However, for those with a background in construction, this is the perfect opportunity to put in a low bid for a great potential rental property or first home.
Outdated Old Cottages
Sometimes, homes are simply far too outdated or far too small for the typical home buyer. They tend to be looking for something that is an upgrade from the home that they are currently living in, or they are looking for something that will grow with their family. From an investor’s stand point, these are excellent candidates for rental homes. With the offer, be sure to explain to the seller the necessary updates (and their costs) that will have to be made in order to make the home desirable or comfortable. Once the home is updated, it can be used as a rental for young couples or college students.
When investing in rental properties, flips, and fixer-uppers for first time buyers, it is important to spot the homes that are worth the investment, yet can be purchased cheaply. In the end, the buyer will be left with a home purchase that he or she can feel good about!