Avoid These Mistakes When Buying A Fixer-Upper in Santa Monica
As a real estate investor, you may think that buying a fixer-upper can give you huge profits since these properties come at bargain prices. You may be right because these types of properties are sold to be renovated and sold once more for a profit.
A well-planned and executed fix-and-flip project can make you good money, but you must avoid the pitfalls when buying fixer-uppers.
Buying a Santa Monica investment property is still a good move since the housing market still gives an attractive investment opportunity for real estate investors.
Once you’ve found a home worth fixing and flipping, the next step is making an offer that makes sense to you and the seller.
One of the reasons for buying a fixer-upper is the savings you get compared to purchasing a ready-made home. Move-in-ready homes are priced higher since you only need to add furnishings and can already live in the house.
When negotiating with the seller, ensure you get a fair price while considering all the repairs needed.
Expect That Things Will Go Smoothly During Repairs
Home repair projects don’t always go as you planned. Even with a home inspection, problems may arise, driving up your cost and getting you over your budget.
Plenty of undiscovered problems can arise, like finding mold growth beneath drywall, which would cost more money to eliminate. Water leaks and electrical faults may also occur during the renovation.
You need to taper your expectations during the renovation process and be prepared when something unexpected comes up.
Not Going Through a Home Inspection
Skipping on a home inspection to move ahead of other bidders is one mistake real estate investors make. Home inspectors check the entire home and spot problems you can’t see.
You can avoid buying a property that will drain your repair budget if you don’t skip a home inspection.
Not Knowing How Much You’ll Spend on Fixing the Property
As equally important as hiring a home inspector is getting estimates from contractors on how much you’ll spend on repairs. You must stay within your budget to make money off the bought property.
If you are looking for financing options that bundle your home purchase and renovation costs, check out our Santa Monica home loans for more details
Looking for financing for your fixer-upper?
Did you know that traditional mortgages don’t cover home upgrades? If you are having a hard time looking for ways to fund your home renovation or purchase your fixer-upper, we can help.
Apply for a Nuline Funding home loan and close the deal on your investment property.
Call or message to get started today.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.