Buying a fixer upper sounds awesome, but it doesn’t always go that way in Denver. Do what the pros do, get the job done by hiring the right team to help you.
In Denver, what is becoming very popular is buying a fixer upper property. Okay, you may be thinking “we’ll there’s tons of investors in the market.” What we’re speaking in reference to is the buyers wanting a personal residence but cannot afford the massive price increase of newly renovated homes.
Right now this may be the only time you can actually buy a house in this market. This is relative and some people can actually afford an $790k priced home in Congress Park. What if you don’t have the funds to buy the brand new home? If you’re willing to embark upon a renovation project by buying a fixer upper, it’ll take too long to do it on your own.
Us being professional real estate investors, of course we’re familiar with the project, our repair budget and a team of contractors we already work with on a frequent basis. In your case if you just went about buying a fixer upper, we suggest you plan as much as possible ahead of time and not once you need it last minute.
Let’s get a little more in detail about the team you’ll need in buying a fixer upper.
1. If there are signs of pests and they won’t go away.
If the inner workings of the property’s structure are starting to lose function, most likely the owners didn’t keep up too well with critters and insect infestation. You know how some say the “freaks come out at night”, well here you go. Start looking for the major signs of trouble and don’t assume it’s just termites that can cause wood damage. According to Old House Web, “Damage is caused by immature termites called nymphs,by the larvae or grubs of the wood-boring beetles, and by the adults in ants and bees.”
A local exterminator will have the knowledge and all the right tools to handle this. They can probably name insects we’ve never heard of. They’ll detect any damage that needs to be repaired immediately and what you need to do to prevent it from happening again.
2. The most important parts of the house, in our opinion.
We think it’s safe to say we spend the majority of our active time in the kitchen and bathrooms. Think about how much times have changed over the years in what people like as well. In the 1970’s homes were built with closed in kitchens for example, open floor plans we’re not popular. Bathrooms definitely weren’t designed to make you feel like you were on a holiday spa trip in Breckenridge either. That’s the beauty of today though, we can renovate a house to look and feel however we want.
all you have to do is simply gather a scope of work and hire a general contractor for the job. Since you’ll be customizing the home the way you want it, you must be very clear and intentional about what you want. Put pen to paper and spell out the budget, time frame and work needed before handing of the job to your contractor. This will save time, money and confusion.
3. How important is running water? VERY important.
When growing up we’ve once experienced a time where a major pipeline went bust and our home went 10 days without running water. Talk about not knowing what you have till it’s gone. This is probably most important you should focus all of your money on if it’s a problem. That’s the plumbing. Think about plumbing like the cardiovascular system of your house. You can’t really do much to enjoy the house without it.
Although you must check, it doesn’t mean all plumbing issues will take thousands of dollars to repair. If your toilet keeps running water after a flush, you probably just need to adjust the float arm or something else small with the inner workings. If you notice the smell of sewage coming from the backyard, it’s time to have a sewer scope done and call the plumber after buying a fixer upper.
4. House Is Like a Frankenstein Experiment
We’re not too focused on home design in this blog because in buying a fixer upper you must focus on what’s a priority. Sure without electricity you may be able to survive (okay, we love having an smartphone too) but it’s not just about lighting a candle or ordering take out for a couple days if you have an electrical problem. This is a major safety issue. Many older homes have outdated wiring or other electrical issues in buying a fixer upper.
It’s one thing if you have old light bulbs that go out. It’s another if you don’t have GFCI’s (ground-fault circuit interrupters) in the kitchen or bathrooms that can shut down circuits before a current can cause a deadly shock. If your lights keep flickering on and off because of the wind or if you keep having to reset a breaker, it’s best to contact a professional electrician that can see what you don’t and prevent a potential major problem.
Buying a fixer upper, especially has a personal residence, will having some amazing benefits you can’t get with any other home. You’ll customize and design it exactly how you want. However, most spend too much on the renovation budget or underestimate what actually needs repairs to begin with. Hopefully this helped and at least gave you a good idea of what type of team you’ll need to help with your project.
Need help with a project? Contact us at Adam Buys Houses Company! See how it is we may be able to work together and walk you through a project. We love helping others create their dream home and have experience in the field of real estate investing. Whether you need a referral or help let us know!