The 3 Must Haves for Buying a Fixer Upper in Orange County

Whether your goal is to flip a house making a juicy profit, or to get your dream home in a neighborhood you couldn’t otherwise afford, fixer uppers can be highly profitable assets with a very substantial return on investment.If you have cash to invest, talent in home designing, and flexibility when it comes to moving in, buying a fixer upper in Orange County can be one of the most profitable investments you’ll ever make.Here are 3 characteristics that qualify you as the perfect fixer upper buyer:1. YOU HAVE CASH TO INVEST. When buying a new home that’s completely done and ready to be furnished, you can afford to be a homeowner just by anticipating a small down payment and by taking advantage of the currently low interest rates for financing your home.When buying a fixer upper instead, you must know that beside the money you put down, you need to have a decent amount of cash saved up to take care of the remodeling (ideally something in between $25,000 and $60,000, depending on conditions).Buying a home in Costa Mesa for $550,000, when other homes in the neighborhood cost around $700,000, can be a great deal. Even if you need to put in $100,000, you are still profiting $50,000! But before you get excited about the opportunity, make sure you have the necessary liquidity and talent that will allow you to make the deal!2. YOU ARE NOT IN A RUSH TO MOVE IN. Fixing a house takes time, usually longer than you originally estimated. Especially if you have a full time job, the remodeling will progress slowly and may not evolve as smoothly as you hoped.Patience is a virtue, but also a gift. Can you stay in your current location while doing the renovations? Can you afford to live somewhere else (places like your parent’s house or a smaller apartment)? You might want to consider living in one part of the house while the rest is being redone. You will have to deal with lots of dust, bathrooms closed off and tools scattered on the floor. But if you are you ok with that, you are or on your way to scoring one the best deals in the real estate market!3. TOU HAVE A PASSION FOR HOME DESIGNING. Let’s face it: hiring ‘The Property Brothers” would cost you a fortune, and could end up reducing the profit margins of your investment. Before you even embark on a renovation project, be honest with yourself and be realistic about the level to which you’ll personally be involved. A designer and a few specialists won’t exempt you from being highly involved in directing the work and making decisions.If you are a creative, hands-on and handy person who likes to take on new projects, fixer uppers are the challenge you were waiting for! And there’s nothing quite as thrilling as having a home designed BY you, FOR you and perfect for your lifestyle!In next week’s post we’ll discuss the “5 Things to Consider Before Buying a Fixer Upper in Orange County”, but in the meantime, feel free to reach out to us at 714-540-7355 or valerie@torellirealty.com Not only do we know the area extremely well, we also have access to exclusive ‘pocket listings’ that could be the perfect fixer upper deal waiting for you!