Features That Make A Fixer-Upper Good Deal For The Investors
Fixer-uppers are a good deal if the investors are willing to put the work into it. As they require a lot of work to make it profitable after the sale, many aspects need to be checked before investing in such a project.
A positive home inspection report
Home inspections are essential to understanding the situation of the house. Fixer-upper houses will need a certain amount of repair. In these circumstances, the less renovation is needed the better it is for the investor. So, it is considered a good attribute if the home inspector provides a positive report regarding the house. It indicates that the house will need less repair.
Easy permit for the renovation
The main deal of a fixer-upper house is it needs renovation to be presentable for the clients in the market. Often the renovation work is so large that it requires permission from the city council or authority to conduct. If the investor gets permission easily, or the previous owner has applied for permission, this is a good deal for the investor.
Affordable loan options
Not every investor or homeowner purchases a home by using cash. They have to take mortgage loans from the bank. Oftentimes financial institutions provide special benefits to the lender when they want to invest in a house. For example, FHA loans, and FMHR mortgages are those loans that help the buyer with the investment. This is considered a good deal in a fixer-upper.