I decided to buy older houses and small apartments that needed fix-up. My reasoning was, I can do much of the work myself. Plus, I can buy them for much less cash down because there are fewer serious buyers for rundown distress type properties. I also thought, and it proved to be correct, that once fixed and cleaned up with bright new paint, older rental houses would command about the same rents as equivalent sized newer houses. People often ask me if necessary to everything about doing fix-up work to be a successful house fixer. The answer is no, but the knowledge is very helpful, even if you don’t plan to do the work yourself. The reason is that you need to know how much things cost.
In my own case, I did everything I could (90% or so) when I first started out because I didn’t have the money to hire it to be done. Many investors do a portion of the fix-up and contract with others to what’s left. In my Real Estate Investor Training Course, I outline the items (fix-up) you should consider doing for yourself first – if not, your handyman worker can follow my outline because I point out several items that earn make you money. Be careful…many items don’t! Refer to products, www.fixerjay.com
In the final analysis, it boils down to money, no matter who does what. Approximately 30% of every fix-up dollar goes to purchase materials. The balance, 70%, is the cost for labor. Obviously, you can save $700 for each $1,000 you plan to spend by doing the work yourself. Saving $700 is almost the same as earning that much. I’d say that makes a pretty strong case for learning how to do your own fixing. But, even if you don’t move a finger yourself, the more fix-up knowledge you have, the more successful you can expect to be doing this stuff.