Tips for Finding Great Handyman Specials

The secret to making great profits in real estate investing is to the ability to spot opportunities where other people see problems. You need to evaluate every potential investment property while thinking of all the possibilities.

Think outside the box

Don’t just look for homes which are in good condition. The homes that are not in need of immediate renovation are usually in very high demand. A high demand means that that the homes will have high sales prices, thus a low profit potential for investors. You need to look out for cheap homes which no one else wants to buy.

Become an area specialist

Choose a specific geographic area to operate in and find out all the details that are necessary – how much cheap houses are selling for and which amenities are available in the area, such as shopping centers, schools and hospitals.

Specializing in one neighborhood is the secret to spotting great bargains. The more informed you are about the area, the faster you can identify a bargain when it presents itself.

Go for affordable environs

There is a huge market for cheap houses. Buying or renting an expensive home is out of reach for most people. While it is true that expensive homes come with a higher profit potential, such houses involve a higher risk if a tenant or buyer is not found immediately. Homes in expensive areas usually cost more from the onset. Such homes are also very sensitive to changes in the market conditions. In addition, finding repossessed homes, foreclosure homes, handyman specials and cheap homes in expensive neighborhoods is a very rare occurrence.

Find the right neighborhood

Avoiding very expensive neighborhoods does not mean that you should invest in run down areas. Most people live in run down high crime neighborhoods because they have to, not because they wish to. Would you purchase a good house in a bad neighborhood? Good neighborhoods usually experience rising investment property values, which is an indication of demand. If you can offer a great home in a good neighborhood, you will get more than enough buyers. You should also be on the lookout for other houses that are being upgraded. This shows that property owner have confidence in the area.

Select the right property

Find a house which blends in properly with the neighborhood. Avoid odd houses that are out of character. In addition, don’t go for investment properties that require major structural repairs. Major repairs are time consuming, expensive and lower your profits. Look for cheap homes that only need a cosmetic rehab. Your aim should be to upgrade at a minimum cost so that you can make a good profit. This profit can be used for purchasing your next property.

Consider minor layout changes. Avoid properties with bad or impractical layouts. If you can enhance the layout with minor, inexpensive changes, you can make a good profit with a bit of extra work.

Save money with inspections

You should make a final deal only after the investment property has been thoroughly inspected. The inspection will reveal what kind of structural repairs are needed, and therefore whether the deal is worth it. A few hundred dollars spent on inspection could potentially save you thousands.

Tips for Investing in Handyman Specials

Many people, while browsing houses for sale in real estate ads, ignore the cheap houses labeled ‘Fixer-Uppers’ or ‘Handyman Specials’. These are properties that have been neglected and would therefore mean additional work for a new owner. While this may be true, smart buyers are able to translate this into profit.

Investing in handyman specials is not a short cut to easy money. However, it presents a real opportunity for making a good profit from rehabbing such cheap homes. There is also the likelihood of losing money. Therefore, you need to do your homework well and know what exactly you are buying and what kind of profit you can expect.

The following are some things to consider when evaluating a potential investment property.

Evaluate the selling price

Use a professional appraiser or realtor to determine a reasonable selling price based on both the neighborhood and the market.

You could buy an investment property and do a great renovation. However, if the neighborhood cannot appeal to the kind of buyer you are targeting, your property might never sell. If home prices are dropping and the market is declining, this will also influence your selling price.

Get the property inspected

Hire a qualified house inspector to carry out a detailed inspection of the home. Find out what need to be fixed and what can be retained as it is. Will you mainly focus on cosmetic repairs, or does the home require costly repairs on the foundation or ripping out plumbing? Evaluate which improvements you can comfortably handle by yourself and which ones will need professional attention. When calculating costs, you need to obtain at least three estimates. This is because prices can vary from one place to another. Establish if a building permit is needed, and add the cost to your budget. Find out which renovations would increase the home’s resale value, and avoid the ones which will only improve your bottom line.

Negotiate low

Most handyman specials are the result of distress sales due to situations such as bankruptcy and divorce. Such homeowners would want to dispose of their foreclosure homes fast. This sense of urgency could work to your benefit. You might be in a position to negotiate a much lower selling price by showing willingness to close quickly on the house.

Buy new

Another option would be to buy new and hire a builder to complete the outside of your investment property. You can then complete the inside, thus making a profit from the finishing work. Quite often, you could sell off the property before building. The down payment will then subsidize the interior renovation.

Do a cost analysis

Whether renovating or building new, you will need to carry out a cost analysis to establish whether your investment will yield the expected profits. Calculate the buying and selling costs, legal fees, closing fees, taxes, commissions, repairs, interest on loans, and miscellaneous fees. Take this total and subtract it from the expected sales price. You will then be able to determine if the final figure is worth your effort.

Investing in handyman specials is a relatively easy process which can result in significant profits. 

If you’re looking for cheap rehab houses, handyman specials, or investment property be sure to join our buyers list today to get the jump on great rehab deals never listed with a realtor! We’ve sold over 250 houses over the past 10 years, none of which were listed on the open market. Don’t miss out on your next great rehab deal!  Join our buyers list now at http://www.RoyalFrogRealEstate.com or http://www.CincyCheapHouses.com

 

Winter Home Maintenance Tips and Handyman Wisdom!

Winter home maintenance chores are not warm weather projects for me because I can't seem to get into the right frame of mind to work when the temperature is in the 80's. Winter preparedness projects should be done in cool weather, so you can feel just a hint of the conditions for which you're preparing.

We're expecting the first frost of the year tonight, so I guess I should bring in any surviving delicate plants that have somehow managed to live through a miserably hot summer. Everything else can wait until after tonight's chill.

Clean up the yard. Disconnect the garden hose and store it in the garage, garden shed or under the floor. Concrete bird baths should be taken down and turned upside down so that water won't pool and freeze, eroding the surface of the basin. Anything else that might be harmed by freezing weather should be stored someplace where they are protected.

Chairs and tables that are going to be left out in the winter weather should be covered.

I wrap thick black plastic over my grills and lawn furniture and secure it with firewood chunks I have taken from my stack of wood that I bought for the fireplace.

Check for air leaks around windows and doors. If any caulking has become brittle and is pulling away from the frames of the openings, it's best to dig that out and replace it with new material.

Threshold strips under doorways at my house usually need to be adjusted or replace. Cold air can really run up the utility bill if they're not positioned correctly, to say nothing of the mice that slip through even the smallest crack.

Any pipes that are exposed to the elements should be insulated. Mine are clothed in foam insulation that can be purchased at just about any hardware store.

If you have discovered anything else that should be protected from the cold, like a bare spot where the wind has blown the insulation aside near a louver or vent, then buy the appropriate kind of covering.

Check the chimney to make sure you won't burn the house down when you light the first fire of the winter. Most of us don't have the necessary wire brushes and pole extensions to clean a chimney and fireplace. I don't feel comfortable about my ability to remove all the creosote and soot left in the chimney and firebox from last year's fires with makeshift tools. If a chimney sweep is not in your telephone book, your hardware store should know one.

Get out your ladder. Fallen leaves which have compacted can dislodge even the tightest hung gutters and make it a hassle to put back in the spring. Even those with gutter covers somehow seem to eventually become clogged with trash. Clean those gutters before winter.

While you have the ladder out, raise it a few feet, climb up on your roof to see if you have any loose shingles or cracks in the valleys; especially the coverings around the bathroom and kitchen vents. These are places that always seem to give me trouble in the winter.

If you have trees close to the house, make sure limbs are cut far enough away from the structure to avoid damaging it when cold winds blow. It doesn't take much of a wind to lift up a shingle or pull the nails out of a piece of vinyl siding.

There are many other things you can do to winterize your home on the inside. Just thinking about the work I have waiting for me on the outside makes me tired.