Buying a fixer upper reddit Hi everyone, I'm eyeing a house that's a total fixer upper. Seeking guidance, tips Hello All: I am thinking about buying a fixer-upper, re-modeling it and turn it into my "forever" home. A little sweat equity goes a long way. Website or software is fine and by best maybe mix of easiest and most affordable ?? This is Reddit's very own solution-hub. I was wondering if this could get approved for an FHA loan. I've been searching for a house to buy as a FTHB in Northern Ohio and the pickin's are slim. Didn't make financial sense to buy it. Has anyone We bought a fixer upper and got pregnant the next month, so a bit different. That doesn’t need any work. A "fixer upper" with out-dated cabinets is nothing, a fixer upper with a hole in the bathroom floor where a toilet should be is huge. 2M house, but did not have the 20% down. Learn how this works - and uncover the pros and cons of buying a fixer-upper. What are some things I should look for when viewing the house? What are some signs The fixer uppers are more in 30-50k range. Mold problems are not worth buying at all! Red tagged houses should not be bought without understanding how to resolve the issue and how much it costs. Please remember: Reddit IS NOT a replacement or substitute for a qualified solicitor, and any advice given here which relates to the law is purely academic in nature and should not be relied upon. Labour/materials/property prices are all fucked at the moment Look on the property price register for similar houses in the same area that were not fixer uppers, see if your fixer upper plus renovations equals their sale price. The plan is to steadily improve it for a few years with the ultimate goal being to move in say 5-7 years. Have any of you bought and lived in a fixer upper? Wife and I are set to close in a few weeks on a small fixer upper outside of a metro area near a military base. If you don’t have big savings to back this up (40k+) or the ability to get that kind of loan on top of the mortgage, I would strongly recommend against this. Maybe not now, but definitely at some point in the future, before I get well into my years. I did 100% financing. A lot of the work to make things pretty will be subpar as well. It doesn't quality for any conventional loans and I'll have to take out $700k to buy it. European Cup and UEFA Champions League winners and runners-up, 1955–56 to 2023–24 The average estimates (interiors only, no extensions or loft conversion or garden work) were approx 125k + VAT including full rewiring and replumbing, some roof fixing not replacement, some damp fixing, plastering, chimney removal, skirting, painting, new medium finishing kitchen and bathroom, carpet replacement, new wooden flooring in kitchen, windows and doors replacement Buying a fixer upper in Los Angeles. Talk me out of buying a $1M fixer upper My husband and I moved to a lower cost of living area in 2019 (bought a house). I have bought a few fixer upper’s. The general advice seems to be "RUN from structural issues!", but I think this is fixable. The majority of people buy finished homes because they don’t care about equity. Buying a fixer upper comes with the risk that the place is needing a lot more fixing than first realized while an apartment is mostly taken care of by the landlord. 1. Btw, 225k, 100k repair that sell for 380k or even 400k is not even close to “too good to be true”, you don’t have to worry about that We bought our current house as a fixer upper for 175k with household income of about $200k (in 2014. First time home buyer or not a fixer upper can be scary to deal with. Do all the repairs to maximize profits. are all $100k issues. You probably need to get estimates but overall, living in a home during renovations sucks. I’ve been searching for homes for a few months now, and of course I fell in love with a fixer upper. Long story short, I didn't want a fixer-upper at all, but something affordable in a very desirable area came up. You could buy a $125K fixer upper and put some sweat equity and maybe $25K into it and it would be worth $200K. It also always costs more than you think. Just don’t expect to buy a fixer upper and make £100k profit in a few months. At this moment I live alone in a modest condo, but if/when my family expands in a few years we would love to consider buying one of these homes and spending a year or two fixing it up before moving in. I have the opportunity to buy an as-is house that needs work. I’ve got a friend who’s been living in a fixer upper for 3 years and has barely made a dent in any of the required work. Chances of spending more on it than a running bike are near 100%. I almost bought a fixer upper in the suburb I am in until my neighbors shared "they are tough here, our deck was 1/8 an inch off required height so they made us rip whole thing out and redo it". 5 bath) with - per the current disclosure - no structural or flooring damage. This would be my first real estate investing type purchase. When viewing a fixer-upper, here are some things to look for: If you never sell your house, no it doesn't matter much. And we did budget a good amount for renovation and modernization of an When I calculate the tremendous amount of money I had to spend, the headache and aggravation, I question whether I would ever again buy a fixer-upper. We're under contract for a house that (for now) The reddit community for TheFinanceNewsletter. Although As I’m coming into full blown adulthood I’m looking into buying a cheap fixer upper instead of renting. A Reddit dedicated to anyone interested in RVing. A house with an outdated interior is really not a "fixer upper". When I found one that I was willing to do the work, the issue was the bank saw now value in buying something that I would have to fix up to be a value. Urgent the concrete boot intel above a window has rotated forward slightly For OD private practice owners, what are your thoughts on buying a fixer upper established practice vs a cold start? Pros of the fixer upper seem to be a good location (well to do neighborhood with multiple stores), but the net profit margin has not been the best <20% over 4 years (granted post COVID) mostly because cost of maintaining the practice seems quite high. The Pros and Cons of Buying a Fixer-Upper Property Hey there, fellow Redditors! I've been in the real estate game for a while now, and one thing I've learned is that buying a fixer-upper can be a bit thrilling and terrifying all at once! A "fixer upper" house doesn't just need a paint job and new cabinets. It took 4 months, $20k, and more sweat and tears than I thought I had in me. It's 3bdr 2 bath 1600 sq ft. Does that you should not buy a fixer upper. Previously we wanted to buy a $1. As discussed before, we are DINKs, have about $100k in cash and bring home $300k every year. I dodged a bullet and decided not to buy a fixer upper in this suburb. There are a lot of different things to look for depending on your goals, your willingness to live in a dirty environment and your willingness to take on big tasks and risks. It was like $500 for paint, supplies, light switches, and a few other things that I knocked out on my own over a few project weekends. Foundation, internal and external walls, roof, etc. Don't buy an investment property to rent because it will more likely count against you than in your favor. I am looking for the Goldilocks size not too big or too small, 800-1200 square feet, though many older house are closer to 1800. Regardless, every home does require large capital investments, such as new roof, new asphalt, etc. I know home prices have skyrocketed but I cannot justify paying $200,000 for a a house IMO is a dump and needs all new updates. I’m currently saving around 200 dollars a month. All I can say is, it's worth it. " By that, I mean a home that has 'good bones' (structurally sound/safe, roof, HVAC, windows, exterior is all good condition), but cosmetically needs renovation such as old carpets, wood floors that need sanding/refinishing, ugly wallpaper throughout, and outdated kitchen/bath. Members Online. Most people want finished homes and pay a premium for it. Good idea? We are considering a house in a great neighborhood on a large lot and right across the street from family we’d love to live near, however it needs a lot of work. I only buy fixer uppers because I don't see the value of paying $50k more for improvements I don't like, whether style or crappy work. This new trend of “fixer uppers” having real damage, foundation issues, leaks/cracks, bad electrical/plumbing is not what was initially a “fixer upper” a fixer upper is a slightly outdated home, maybe the floors scratched, or the carpet is green and smelly. I'm in Minnesota and looking at a house in a run-down condition originally built in 1878 with a listing price of ~$200,000 and is being sold as is. I'm looking for any information about the process of actually finding a good cheap bike that has some potential to be fixed up. Is it worth buying a fixer upper? I’m ready to make the switch from renting to owning, and though im willing to shell out a bit of money I wouldn’t mind cutting a small corner or two if it means saving some pocket cash and having to get a second-hand instrument serviced. View community ranking In the Top 1% of largest communities on Reddit. If you buy a fixer-upper $25K under the move in ready and then put $25K into it and have essentially the same value home as the move in ready, you've bought yourself nothing but hard work and possibly satisfaction of doing that work. In the area I live in, these homes are in high demand, which doesn’t surprise me because it’s the dream. For nearly a decade we have tried to buy a house where we lived, but the market just keeps rising much faster than our incomes can keep up. By the time we found out I was pregnant, we had gutted the place 🙃 it was a race to put it back together but we got it to a liveable place by the time the baby was born and over the next few years we continued working on things that were of secondary importance Go slow. Best remodeling software ?? I don’t need something like on fixer upper but my wife and I are buying a house and would love to better plan rooms and renovation etc . Currently looking at buying a house that’s in a great post code, but it’s in need of some love (probably about $100k of love). If you lose your job and can't afford the payments is the biggest risk. Or check it out in the app stores Congratulations on getting a house! I used to flip houses. We purchased a fixer upper in a semi rural area (maybe 10 minutes drive from grocery and 45 minutes drive to work) recently. There is a formula. The house I purchased had good bones, but no flooring and bad electrical panels. Buying fixer upper as FHA . Reddit . Ticks the important boxes that are hard to change like land size, floor plan and structure etc. Otherwise your standard home that needs minor repairs can be done with a regular VA loan, however you may need to just negotiate with sellers a bit more for repairs after you get your inspection done. It really will be a lender decision. It’s a 1970s three bed detached, around 1000 sq feet. Now it’s like $500K and needs $150K and if you’re lucky it will be $660K when you’re done. We did some financing and it seems our mortgage would only be around $150 a month and we thought it would be a good idea to buy it now and fix it up while we wait for our apartment lease to end, so that way when our lease is over we can just transition into the new home. Now, it looks like our only choices are to leave the city (would make commuting difficult) or buy a fixer-upper. We are now planning to buy a smaller (cheaper house), and perform renovations to make the space livable as we want. reReddit: Top posts of January 2014. Here is the costs: HVAC: $10,000 Replacing Joists (over 100): $20,000 Dumpster Rentals: $2,000 Crawlspace I know someone who'd buy a fixer upper for cheap in ghetto areas (South Chicago), did his own fixing which took months, had it certified for occupancy and ended up making a In a nutshell: only get a fixer-upper if you're prepared for it to cost more and take longer than you'd expect, and you're confident you'll be living in that area long enough to Buying a fixer-upper can be an exciting opportunity for homebuyers, whether you’re a first-time homeowner, an investor, or someone looking to create your dream house Yes, I have my regrets about buying a fixer-upper in a really hot market. The dangers of buying a flip home is that the seller only did the bare minimum to make things look pretty, but didn't actually fix anything important. I would be very realistic about what you actually need in a house as a first time home buyer. And one benefit, for us, of buying a fixer upper means the mortgage is incredibly cheap (10% of our very average combined income), Hello I’m 23 and I live in an apartment in Oklahoma. Foundation, plumbing, and electricity is working but it was taken down to the studs in a mid-reno that was cancelled. I'm currently looking at a fixer upper house with some issues. Hold onto your money a bit. 4 acres of land. Hello everyone, We are considering buying a fixer upper home that needs some work, including cosmetic improvements (siding, paint, etc), but also a bathroom remodel, roof replacement and possibly an issue with trusses (roof is bowing a bit). I ended up buying a nice renovated place and gutting it because I couldn’t find a reasonably priced fixer upper to gut instead. If you’re a bit handy yourself it’s absolutely worth it. Buying a fixer upper with an inspection contingency is not a good mix. ($900k total price - $200k down payment). I am a first time buyer, decided to buy a fixer upper in a nice area in Hertfordshire as it’s the only detached house I can afford. The VA is just a promis to pay if needed View community ranking In the Top 1% of largest communities on Reddit. The problem is that the sellers who see renovated and new build housing in the area go for 500k+ and decide that their shithole is worth 500k "based on the market. A friend of mine is selling a 1999 A4 Quattro V6 with 148K miles on it for $800. I recently bought a fixer upper for an unbelievably low price, but it’s called a fixer upper for a reason. So buy it at 50% assessed value for cash, pull out 80% to pay back your cash reserves and finance the reno. Depending on where you'd like to go the best sort of fixer uppers are where the property is bare to the studs. Just don’t over capitalise. If you're flipping, your formula is: Max offer = ARV - (closing costs to buy + closing costs to sell + rehab cost + holding costs + minimum profit margin). I fell in love with the property itself, but the house needs a lot of help. However, if I'm going buy a fixer upper to live in long term (not to flip) and will spend money on renovations anyway, how much money does one typically save vs buying something with no work needed? With the market being what it is right now, I would not buy a fixer upper if I had to bid way over asking. The sensible thing is to buy a fixer-upper, but you can't use a VA loan for that. The stuff I can fix is factored out of the math, for me. That's your ARV. I have a couple of friends who are dealing with that frustration now. The owner is a family friend that would discount the price (currently estimated as $400k) based on work estimates (roughly estimated at $80k) for fixing termite issues, mold issues, re-painting, and finishing up some bathroom work. But some people like the challenge, some people like making a space their own. Issues such as some missing drywall, missing floor tile, no appliances, and some other things caused by a flood. e. It was last sold in 1995 for $37,000. Material and labor shortages and high prices mean work is slow right now. View community ranking In the Top 5% of largest communities on Reddit. Or Buying a "fixer upper" company, and the average kitchen reno we do is in the $50-60k range, I can't imagine a house and lot for that! A fixer upper on a small lot in the shitty part of It’s fairly regional for labor, and darn near everything is scarce/expensive right now. Buying a Fixer-Upper with Structural Issues . But many people don't have the funds or flexibility to remodel a whole house like that, I've heard this a lot on Reddit and even in the local news that builders will build crappy homes, As a fixer upper homeowner this was perfect for me and I was willing to go through the extra effort. Buying a fixer upper . I just recently found a fixer upper for 67k no interest and 5k down. I just had a child/got engaged. What is preventing you from placing an offer w/o it? Alright - first time home buyer here and I really need a non bias opinion to bring me back down to earth. In my area fixer uppers sell for close to what a move in ready home is worth. Best advice I got from my father in law who helped us is, "the hardest part is Obviously this is purely anecdotal, but my family had to sell a fixer-upper house this year after a death in the family and we were warned by the estate agent that we'd need a cash buyer to show interest, as no bank these days would be willing to mortgage a house that Buying a fixer upper requires a lot of cash that a mortgage doesn’t cover. I think you’re making a good decision. You can buy fixer-upper houses at lower prices and renovate them to enjoy or sell. It’s a fixer upper. You should never buy a fixer-upper unless you have experience as a home builder. Problem is that it doesn't always work out that way. If you aren't underwater and you can't afford the house anymore, you It seems like you understand the risk and costs associated with buying a fixer upper. ) A kitchen remodel will depend on the availability of materials and tradespeople and will probably cost $40k+ Hi, I'm 23f and absolutely stupid about this whole homebuying process. But apartments come with shitty landlords a lot of the time. If you're looking to finance a fixer upper, one option is to consider a renovation loan such as the FHA 203(k) or Fannie Mae HomeStyle loan. And using the equity to buy/build a new house for my new family. We are unable to afford the lifestyle we want to live. I've found a pretty fixer upper (3 bed, 1. The building structural surveys identified the following urgent issues. It is now listed at $200,000. It's a bit distressed, and probably needs $30k of repairs to be able to be rented. " My neighbor recently passed away, and his sisters (sole heirs) don't want the his house. Stuff like fixing the carpet at the top of the stairs, fixing the lattice on the back deck So your home has to go through a Home Inspection prior to your purchase of said “fixer upper”. There is no mold or anything. I thought this might be the best place to open conversation about a home I want to buy rather than r/FirstTimeHomeBuyer just because there's more people here and the posts are usually more substantial than people showing off their keys and houses. I'm a 22-year-old looking to buy my first home. In most of the country, it's pretty crazy. Most projects aren't worth more than $200. Honestly I’d only do a fixer upper if you have the capital readily available to pay and do the work soon after moving in. Fixer upper used to mean there was value to get out of it. The seller knows the house is a fixer and is likely selling as is. Find out what sort of town you are buying into. Everything else is good like the roof, foundation, and A/C. That said, after house 1, I prefer houses that have not been DIY-ed in the past. Remodel of a kitchen and bathroom are less costly. Feb 3, 2023 I'm on house 3 of fixer uppers. Why would anybody accept all the risk, expense, and headache just to end up with a house that is the same money as if they just bought a house that is not a fixer upper? This question actually does have an answer. I was leaning more towards the latter of renting it. So I love good fixer uppers! fun. Hi all, Still a ways away from buying anything, but my wife recently brought up the idea of purchasing a fixer upper. Nobody wants to buy a fixer upper for 500k that they still have to renovate. Bonus: This house is big enough could also be a forever home for us and fixing it would greatly increase the value so we could sell in the future if we wanted to! I am 100% willing to put in the work for it and make it so I love it rather than moving into something that was fixed up to sell or to someone else's liking. Congratulations on considering the purchase of a fixer-upper! It can be a rewarding experience to take on a project like this, but it's important to be well-informed before making a decision. Was mostly gutted. Wondering if anyone has any insight as to using the VA Loan for a "fixer-upper. Obviously, buying a fixer upper is going to be cheaper initially than buying something that is move-in ready with no work needed. The builders quote for the fixer upper was 100k. Flippers try to buy fixer uppers, do mostly cosmetic improvements as fast as possible, and then try to sell for a profit. Up here you'd be lucky to find a 1700 sqft house of any kind, even a total fixer-upper for under 350k anywhere remotely near the city without winding up in fairly remote / farm country and the fraser valley, 1 bdrm condos start at around 240k here. The house was built in the 40’s, 980 sq feet with detached garage that needs a lot of love. Obviously there's a catch, in that there are repairs to be made. Lived in our fixer upper for 6 years before finally fixing her up. But it has good bones. My main regret was hiring a seemingly reputable inspection company, who then managed to miss about 1,500 square feet of asbestos tile in the house. . How can we help? Reddit's home for all things Manchester United related. My parents only ever bought fixer uppers and have a real estate portfolio worth 7 figures. I’d be renting to own. Potentially buying a "fixer-upper" I'm hoping that the Reddit Audi community can help me out. Maybe $75-125 per square foot? The framing isn’t really the difficult part of building a house, so “replace everything but the framing and siding” is going to be pretty close to the cost of a FYI. My clients and I buy fixer uppers all the time, the key difference being they are not "live-in" flips so our criteria are different. If you're going to buy a fixer upper, get a good home inspection, find a good contractor, and get all the work done before you move in Please remember: Reddit IS NOT a replacement or substitute for a qualified solicitor, and any advice given here which relates to the law is purely academic in nature and should not be relied upon Buying a fixer upper Recently applied for a mortgage, got approved, but the bank denied the home due to being “not liveable condition” after the appraisal was done. So there's no bathroom, no kitchen, etc. What are the steps I need to take in order to make this happen? Get the Reddit app Scan this QR code to download the app now. Energy Efficiency Home Improvement Tax Credit (25C) This means that any energy efficient plumbing and electrical updates you make, starting on January 1, 2023, will be eligible for a credit of up to 30 percent of the total cost, up to $3200 per year on your federal tax return. Fixer uppers are dependent on problems. Hi real estate Reddit, short while lurker, first time poster. Anybody buying your fixer upper is going to want more money than the repairs cost discounted. If you're buying with a foreclosure deed, lender will have a moratorium (6mo here) before offering heloc. Buying a fixer upper and turning it into a forever home. Also any information on what maintenance will be required as well. From road trips, advice, or buying and selling; please come share your experience or take some advice. Buying a Fixer upper . Price wasn’t bad, but man it needs so much work. Like you, we were leaving a insane housing market for one that is drastically less so. The house design is beautiful, as close to what I've dreamed about as I'll get in Mississippi, a bit over 1,900 sq ft, and could definitely be a forever home. I. It's our first house. So my husband and I are currently renting a home from a person we know Buy a fixer upper in a great location at a discount because of its condition > customize to your liking > enjoy the instant equity. I’m especially interested in fixer uppers that have historical relevance. It would be great to hear from people who have done something similarly regarding the positives/negatives, unexpected expenses or issues, and ultimately if they are happy or not. Now we want to move back, but all we can afford are 1 million+ ranch homes from the 1950s that may or may not be decent shape but are extremely outdated. The only way to profit is to get something like an older sportbike that is still worth ~$3,000+, Pay no more than $200-$400, cross your fingers that it has only minor issues, then hope you find someone that wants to buy that specific bike. Get the Reddit app Scan this QR code to download the app now. Every house I tour now just doesn’t compare to the vision I have in my head of the fixer upper once I get it cleaned up. it was a POS in an up and coming neighborhood worth about $400k today). It gets you into better locations and doing work increases the value which is called manufacturing equity or sweat equity. I love the look of use the following search parameters to narrow your results: subreddit:subreddit find submissions in "subreddit" author:username find submissions by "username" Bought a fixer upper in early May. When buying a fixer-upper, it doesn't need to be just cheaper than a move in ready, it should be SIGNIFICANTLY cheaper. com and it's 50,000 readers! (We share ideas on money, finance, investing, stocks, Use a rehab loan for a real fixer upper that needs renovations to even appraise. There’s no money to be made in flipping and the buyers are people who want to live in the place and customize it to their liking. My wife and I just bought a fixer-upper, sight unseen. Structurally, the house is ok but needs tons of cosmetic work which I can tackle but there’s something I’m nervous about: the house reeks of dog piss and shit. Reddit iOS Reddit Android Reddit Premium About Reddit Advertise Blog Careers Press. It has foundation issues, wood rot, etc. It’s sitting on . inspired by this post, I was wondering if anyone has knowledge on how to go about getting a fixer upper and how to actually fix the thing up. My wife and I are looking at buying a house to fix up, but it has some issues. Hi all! I made a reddit specifically for this purpose so I'll try and get to the point quickly. I live in them while doing the work. These loans allow you to borrow money for both the purchase price and the cost of renovations, and can be a great option for buying a home that needs updating. Repairing those deficiencies would have eaten every bit of my liquidity. This home is the current home I live in and rent and I’m getting a very good deal on the home. A fixer upper is cheaper to buy, but that doesn't mean it is cheaper in the long run. However, I wanted a home with equity. You actually want to exclude fixer-uppers from your comps so you can determine the after-repair value for the subject property. I live in Vancouver, BC. Im interested in buying an AS IS property. Before when I was single, I would be more than happy with buying another fixer upper and doing the same thing. mesyb mxodne lxnt feuniwl qxbufac ljgs axtcf lvupb nawutc olzy