Buying lower-priced fix-up houses, fixing them up using your own time and effort, and renting them out is a fairly low-risk, high-reward way to generate wealth and security. If you have been thinking about real estate investing, this may be a very good time to do it. There are many benefits in buying a fixer-upper and renting it out, especially in the current economic condition.
Photo by Rich115 via Flickr
Pitfalls to buying in fixer-upper houses, such as broken plumbing systems, worn out electrical wiring, and cracked foundations can be avoided with the help of a professional inspector. Once identified, these conditions can laid out before the seller, who must either fix the problems to your satisfaction, or you can pull out of the deal.
Of course, it takes hard work to find a house, make all of the repairs, and learn how to deal with tenants. If it were easy, everyone would be doing it. You’ll learn not to take life, or tenant problems, too seriously. Shakespeare said, “A light heart lives long.”
The good news is that before long your real estate business will be running like a Swiss watch, as you learn valuable technical and people management skills that are useful in many other aspects of your life. You are also rewarded with a feeling of satisfaction in your accomplishments, a stronger sense of financial security, and the peace of mind that accompanies it.
The time to buy in real estate is when prices are low and soft, and when interest rates are low. If that sounds like the present situation we are in, you’re right. In general, recession may be a good thing for fixer-upper investors for two reasons:
This could be a once-in-a-blue-moon opportunity, and as Thomas Edison said, “Opportunity is missed by most people because it is dressed in overalls and looks like work.”
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