Pros and Cons of Purchasing A Fixer-Upper Property

Whether you’re just starting out in real estate investing or you’re looking to build your portfolio, investing in a fixer-upper could be something you’re considering. Like most things in investing, fixer-uppers can come with many benefits but also many risks.

Let’s dive into a few pros and cons of purchasing a fixer-upper property so you can make an informed decision on whether this is the best option for you as an investor.

Pro #1: Lower Purchase Price

Fixer-upper homes tend to have lower purchase prices because the sellers understand the home will need some work prior to moving in. Even though you will need/want to put additional money into the property for repairs, initially, you’ll have a lower purchase price and a lower down payment than you would have if you purchased a property that’s more move-in ready.

Pro #2: Ability To Customize

Sometimes fixer-uppers will need to be gutted entirely, giving you the option to customize the property and make it exactly what you want. This gives you the ability to really think about what features matter most to your renters and make sure they’re included in your property. Renters like to see updated kitchens and bathrooms, so adding new countertops, cabinetry, and even a fresh coat of paint will go a long way.

Con #1: Expensive Repairs

Fixer-upper homes often come with a lot of repairs, which can get costly. It can be easy to get carried away and go over budget when it comes to making repairs and making the property what you want it to be. 

Con #2: Unexpected Surprises 

Even if you have a home inspection completed, there will sometimes be unexpected issues along the way. These issues can lead to even more expensive repairs and a longer time period for repairs to be completed, which can affect your timeline. 

Purchasing a fixer-upper property is a great option for adding more to your portfolio. If you have any questions about fixer-upper properties, reach out to us! We would love to provide our expertise and help in any way we can! 

How To Make Your Rental Property Stand Out

When advertising your Round Rock rental property, you want to make sure it stands out against other local rental properties. Each day your property sits empty is money out of your pocket. Here are a few tips to make sure it gets rented out quickly.

Curb Appeal

When prospective tenants are looking for rentals, they are looking online. The first pictures they see are of the exterior of the home, so you’ll want to make sure it looks nice. Make sure the weeds are pulled, the lawn is well-manicured, and trash cans are put away. You don’t need to go overboard, but small things will make a big difference. 

Staging

It’s hard to envision where the furniture will go and what the property will look like if it’s vacant – so consider staging the home to help tenants get a better idea. Avoid bringing in any personal items, but items to make the property feel more inviting that can help tenants imagine what it’s like to live there are helpful.

Repairs and Updates

Take care of your rental properties and make repairs and updates as needed. Even when you don’t have a tenant living in the property, make sure to clean regularly and make sure everything is in working condition. 

Know Your Competition

There are many rental properties in Greater Austin, and we want prospective tenants to choose yours. So make sure you do your research and know what else is out there. You can use this information to point out what’s special about your property compared to others in the area. 

 

At the end of the day, focus on what makes your property special against all others in the area. Keep it simple and do what you can to make it shine. If you have any questions or need recommendations, reach out to us!