Buying, renovating, and then selling homes can make you rich. However, the key to making the most cash is finding the right property. It can be hard to do this if you’re a newbie, though.
Hopefully you’ll find this article useful, as it discusses how to find the best home.
Look at the Bones
The house you’re interested in might only look good on the surface. There may be a lot of issues with its “bones” (windows, pipes, roof, HVAC system, and gutters). You’ll have to pay a lot to fix these problems, so it’s best to look for another house.
Unless you have a good eye, it can be hard to spot the mentioned issues. Bringing a home inspector with you might be a good idea.
Location Matters
Just because a house looks good and doesn’t have any issues with its “bones”, this doesn’t mean that you should buy it. It might be in a bad location.
Which locations are the best? Look for streets and towns that are rapidly being developed. Hopefully, there are a lot of schools, malls, and restaurants around, as this would make buyers very interested in the property when you list it.
As you can imagine, though, buying a house in a super urbanized area, even if it’s run-down, will cost a lot. However, the ROI will be worth it.
Look at the Basement
If there are pipe issues on the property, most of them will be in its basement if it’s unfinished. A lot of mold can lurk in the space too, which would be a nuisance to fix. However, remodeling the space can cause property value to rise exponentially.
Just know that you might have to hire a specialized team to do the space up. You’re lucky If you live in Ottawa, as you won’t have to spend a lot on finishing a basement. Ottawa basement remodelling is probably the most affordable in the country.
If you want to get your basement done in Toronto, there are many services to choose from. You should easily be able to find one within your budget.
Team
You need a good team to work on the home. Don’t be afraid to take your time to look through the contractors around. This will ensure you get the best job done.
To help cut costs, you can recycle materials. You can also do some of the basic remodelling yourself and then have the contracting team come in.
Keep in mind how long your team will take the finish the project too. The price of houses on the market might be at an all-time high, so selling as soon as possible would be ideal.
Do Your Research On Funding
Unless you have savings to tap into, you’ll have to contact a lender to acquire the funds to buy and renovate the home.
Do your research if you’re going to be applying for a mortgage – some lenders charge higher interest rates than others. Alternatively, the lender you want to work with might not approve your loan, as they may think you’re making a bad investment.
A specific credit score is required if you want your loan to get approved. Moreover, you’ll need quite a few documents depending on the bank or finance house you’ve applied to.
Additional resources:
- Buying a home to flip? The Home Loan Expert recommends you study your funding options
- Smart steps every homeowner should take
- How to select a home loan
Tammy Litke is a Dallas blogger, blogging since 2008. She loves to watch movies, play video games, spend time in the kitchen, and travel. Between recipes and reviews you’ll find many helpful and some just plain funny posts on her blog. Welcome, pull up a chair and stay for a while!