Everyone is looking for extra money these days. It takes money to earn money however. A great way to earn extra money is to rent out a living space. A lot of people are buying rundown investment properties and fixing them up to be a livable space for a family. Buying a rundown property will cost less money than buying a move-in ready property. It takes extra effort, but will be worth it for the money you save and the profit you will make when the property is nice looking. You have two options when fixing up your newly acquired property. You can either renovate the existing building or you can tear down the old building and rebuild from scratch. Both options have advantages and disadvantages that you’ll need to take into account.
A Real Fixer-Upper
When you buy a rundown property that you want to use to rent out to other people, a commonly used method is to renovate the building. Putting in new plumbing and electrical wiring is usually a must for these types of properties. Using the old pipes and the old wires isn’t safe. The plumbing may not stand up to water pressure if it’s been unused for awhile. The old wiring can cause fires if it’s not up to code. Make the property useable for a variety of families. If there is only one bedroom, try to configure the layout so you can add another bedroom. This broadens your prospects for potential renters. Most families are looking for an open concept house so tear down those walls! They want to be able to see their kids and their company from the kitchen while entertaining. Give it a fresh coat of paint in every room as well as outside. Fix up the carpets and floors so that they appeal to people rather than turning them away. Update the kitchen and bathrooms because everyone is looking for a sleek modern kitchen.
From the Ground Up
Sometimes the property you buy has a house or building on it that just isn’t salvageable. While it is normally easier to fix up an existing building because you have something to start with and don’t have to build from the ground up, the other option would be to tear down the old structure and have a new one built. Sometimes it would cost more money to renovate a home than it would be to build a whole new building. Tearing it down gives you infinite possibilities for layout so you can build whatever type of home you want. Because not everyone has the ability or know-how to tear down or build a structure, it will be very beneficial to you to hire a construction company. They have the skill, expertise, and experience to get your investment property up and running. You can even hire a company that will work with you on the blue prints to figure out exactly what you want and make it happen.
Buying an investment property is quite a popular idea these days as everyone is looking for a little extra cash. Get on board with this great money maker and buy yourself a fixer-upper to either renovate or rebuild to make the money you need. With these ideas and a little elbow grease, you’re sure to get the property of your dreams.