Two weeks ago I looked at a semi detached home in the Northlake area (North Waterloo) that needs cosmetic work (kitchen, carpet, paint, basement etc) – priced at about $20,000 under what properties in good condition are selling for.
The house was what I’d call a “fixer upper.”
Why do some real estate investors prefer a fixer upper to an investment property that is in better shape and ready to rent, like a Kaufman Loft in Kitchener, or the new Bauer Lofts (if you live in Waterloo, read this article about the new restaurant there, the Bauer Kitchen) or even a pre-construction unit at the 144 Park Condos?
Some of our clients are able to renovate a house themselves, and are able to save money over an investor who is using a team of contractors to renovate or flip a house. This means more profit for the investor.
Some people however, bite off more than they can chew when they try to handle a fixer upper. So, how can you tell which you’re going to be?
Are you a good fit to invest in a fixer upper in Kitchener Waterloo?
1) You have experience and are actually good at (as opposed to thinking you’re good at) renovating properties yourself
2) You have a dedicated team of contractors who will renovate your investment property
3) You have prepared an accurate budget for your renovation, including factoring a contingency fund – extra money that you’re setting aside, just in case.
4) You have set aside a cash reserve fund in case their are additional problems you run into during the renovation, or if you have the rental property vacant for a few months before its rented. You don’t want to be in a situation where you don’t have extra money set aside (outside of your family’s normal budget) if you need it.
If those things sound like you, let’s talk.
If you’re interested in buying a fixer upper in Kitchener Waterloo, call me today at 519-772-4376 or email me at Benjamin@BenajminBach.com