Whether your goal is to flip a house making a nice profit, or simply get your dream home in a neighborhood you couldn’t otherwise afford, fixer uppers can be highly profitable assets with a substantial R.O.I. = return on investment. If you have cash to invest, talent in home renovation, and flexibility when it comes to moving in, buying a fixer upper in Orange County can be one of the most profitable investments one will ever make.
3 Must Haves for Buying Fixer Uppers
#1 HOW MUCH CASH CAN YOU INVEST? When buying a new home that’s completely done and ready to be furnished, you can afford to be a homeowner just by anticipating a small down payment and by taking advantage of the currently low interest rates for financing your home.
When buying a fixer upper instead, you must know that beside the money you put down, you need to have a decent amount of cash saved up to take care of the remodeling (ideally something in between $25,000 and $60,000, depending on conditions). You may also consider a second smaller loan after closing the first.
Buying a home in Costa Mesa for $550,000, when other homes in the neighborhood cost around $700,000, can be a great deal. Even if you need to put in $100,000, you are still profiting $50,000! But before you get excited about the opportunity, make sure you have the necessary liquidity and talent that will allow you to make the deal!
#2 ARE YOU IN A RUSH TO MOVE? Fixing a house takes time. It’s sually longer than you originally estimated. Especially if you have a full time job, the remodeling will progress slowly and may not evolve as smoothly as you hoped.
Patience is a virtue, but also a gift. Can you stay in your current location while doing the renovations?
Can you afford to live somewhere else (places such as your parent’s house, an apartment)? You might also consider living in one part of the house while the rest is being remodeled. You may have to deal with lots of dust, bathrooms closed off and tools scattered on the floor. However if you are you good with that, you may be scoring one the best deals on the real estate market!
#3 DO YOU HAVE A PASSION FOR HOME DESIGN? Hiring ‘The Property Design Guru” would cost a fortune. It could end up reducing the profit margins of your investment. Before you even embark on a renovation project, be honest with yourself and be realistic about the level to which you’ll personally be involved. A designer and a few specialists won’t exempt you from being highly involved in directing the work and making decisions.
If you are a creative, hands-on and handy person who likes to take on new projects, fixer uppers are for you!
Free to reach out to contact me at 949-205-6626 or my contact page Not only do I know the area extremely well, I also have access to exclusive ‘pocket listings’ that could be the perfect fixer upper deal waiting for you!
Find fixer-uppers homes for sale in Orange County. Tour fixer-upper houses & make offers with my assistance.