Today, let’s visit a home that I’m previewing for a client looking to buy fixer uppers. My plan is to determine if this property might be a good fit for my client.
With a practiced eye, a good investor (and realtor!) can scope out the good, the bads and the ‘Gotchas’ of a property, making the potential transaction a much smoother and cost-effective process.
Not familiar with the Gotchas?
The ‘Gotchas’ are some of the imperfections of a house that might not seem like much to the naked eye but may present some issues in the transformation process of a fixer upper.
In reviewing this home, it’s in pretty good shape. It needs new windows, a new roof and it’s definitely in need of an updated kitchen and bathrooms.
It’s when we turn to the electrical that we get a glimpse of a ‘Gotcha’ that can easily be missed.
Take note of the two-prong outlet which tells me automatically that the house is not properly grounded. The investor/buyer of this property will need to invest some money into upgrading the electrical in this home. It’s not a deal-breaker, but it’s a ‘Gotcha’ that an untrained, inexperienced eye may miss in determining whether or not an investment property suits their needs. Unrecognized ‘Gotchas’ can add up and derail a project.
Overall, there is a lot of potential in this property but understanding the little ‘gotchas’ is imperative in making informed decisions regarding a real estate investment.
If your agent isn’t helping you find the ‘Gotchas’ in your property search, give me a call. Let’s talk.