Are you thinking of buying a fixer-upper home in the Metro West area as an investment? If you’ve been thinking about it, there are 5 parts of the home you must check before making that purchase! Read on or watch my video to find out why.
#1: The Roof
A standard-shingle roof only lasts about 20 years. You’ll want to inspect the roof on the home you’re looking at, because the average roof replacement costs between $10,000-$15,000 or more. Take this into consideration if you are planning to flip your home!
#2: HVAC - Heating, Ventilation, and Air Conditioning
After the roof, replacing a home’s HVAC system is the single most expensive item you’ll be involved in fixing. Depending on the system’s size and the type of equipment you purchase, you could easily be looking at $8,000 or more to replace a system. On some older homes, you may need to also add new duct work, so make sure you think about that, as well.
#3: The Foundation
The foundation is what supports the home, so it’s essential for it to be checked thoroughly. If the foundation has large cracks or looks like it is sinking, then you’re going to be looking at major repair investments. Not all foundation problems are found outside the home, though. Other signs could include uneven floors, gaps around window frames or doors, doors that stick or won’t close properly, and horizontal cracks in the basement walls. Make sure you check for all of these red flags.
#4: Electrical System
You will need to make sure that the electrical system in the house is up to code. Any old or outdated equipment will need to be updated and replaced. In many cases, the panel box will need to be updated, and extra circuits will need to be added throughout the home to bring it up-to-date with today’s technology needs.
If the investment property you’re interested in has been sitting empty for some time, then there is a good chance that there could be problems with its plumbing system. When pipes are not used for a long time, they can become dry, brittle, and more likely to develop leaks. It is important that you check them thoroughly.
Beyond these five critical pieces, you’ll also want to check a few other things. Look for insect or pest infestations, mold, dry rot, asbestos, water damage and, last but not least, the home’s location.
While it’s every investor’s goal to sell an investment property after fixing it up, there are some instances where a home still won’t sell, even after your renovations. If you want to be a real estate investor, you’ll want to ensure that the home you invest in can still turn an eventual profit if you are forced to rent it out, instead of selling it quickly. Your profit will take longer to accrue this way, but at least you won’t be sidelined with a second mortgage if you can get a renter in at the right price.
If you’re looking for more tips on investing in a Boston area fixer-upper, check out my downloadable PDF. It’s full of great information! If you have questions after that, feel free to give me a call, I’m happy to help.
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