buying a fixer upper

alhamid said: "im thinking of buying house that needs work. problem is. i not a repairman. do you think i will make money if i have to hire workers?"

thezster said: "Depends on what you buy it for.... I just bought a "fixer upper"... paid 164K for a home that comps will bear 225K for (in good condition). I'm putting 12K into the home..... making my base cost 176K........ Hoping to clear around 25K on the deal after realtors fees, etc..... Can you make money with subs doing the work? You have to put a pencil to it and decide. Don't be fooled by the "fix n flip" shows on TV these days. It's not that easy. Yes, I could use subs to do my work.... and only clear 10 - 15K. However, I enjoy remodeling work - as well as the increased profit from doing it myself....... It takes a lot of work to find a great deal..... as I tell my broker every time he presents a new property - "How bad was the fire?"....... I look at about 20 properties for each one I buy.... to make sure I'm getting what I want......."

lil dickie said: "It's got to be helpful if you can do the work or have a buddy you can trust to do it. You can get ripped by subs if you ain't careful."

Heather said: "A relative of mine does this basically for a living. He does some of the work himself, and brings in subs for the work he can't do.. Things like repairing the roof, repairing drywall etc.."

lil dickie said: "Man, I don't know enough to buy a fixer-upper. I'd be afraid of getting screwed."

Harry said: "Keep in mind if you sell within 2 years you have to pay capital gains. If you own longer you don't pay any capital gains on profits up to $250,000. What I call priorities... You don't want termites or termite damage...get that taken care of asap. You don't want water leaks...so make sure the roof is good or fix it sooner than later. Fix leaky plumbing and caulk tubs. One game is to rent for 2 years while saving money to fix it up during the period prior to sale time. And of course do the necessarily fixes as they arrise. Of course with some of today's prices renters may not makeup what the mortgage costs...if you can find renters Also are prices going to go MUCH higher that investment is worthwild? I wouldn't buy unless the price is a bargain or you see a future upside to the region where the home is. My last home purchase just happened to be near a new communter train station...GOT LUCKY!!! Consider... Where are property taxes going? Up? How are town services??? Is town having difficulty?"

briancox89 said: "I know 2 people who do this and one uses almost all subs and the other likes doing it. People who do this often own multiple properties. Good luck"