Buying a fixer-upper home can be a profitable investment. Such properties are generally available at prices well under market value. Your “sweat equity” can help increase their value for re-sale.
Your best bet is to find a house in a comfortable neighborhood that needs cosmetic repairs — paint, wallpaper, carpeting, landscaping, etc. When you go hunting for these investments, look beyond bad decorating, ingrained dirt, and deferred maintenance. You’ll often find these kinds of homes through estate sales or in areas largely populated by the elderly. A real estate agent who does a lot of business in the area may help you find possible purchases.
You’ll need a good home inspector to help you avoid “money pits” in need of serious structural or major renovation work. In addition, it’s best if you have trusted contractors at your disposal because there may be jobs you are unable or unwilling to do on your own.
