Unlike stocks and bonds, real estate has a low correlation to inflation, making it an ideal hedge against it. Because of global disruptions in the supply chain and other economic factors, many enterprising people are considering real estate as an investment in 2022. In the real estate market, flipping properties is a popular strategy. Rental properties are another opportunity.
If you’re an investor looking for a fixer-upper, you could flip the property or rent it out. With that in mind, here are three common renovations you’ll need to make before you can make a handsome profit.
Fix the Fence
Essentially, a fence is a physical and visual boundary separating two parcels of land. However, damaged fences are a blight. When buying a distressed property, you may be tempted to ignore the fence and focus your repair efforts elsewhere. Nevertheless, there are several reasons why you should restore the fence after purchasing the property.
In the first place, it will keep your property’s boundary clear. A well-maintained fence will show that you\’re a good neighbor and that you take pride in your property. Second, a fence can keep a family and its pets safe. Third, a fence can increase the curb appeal of your house, making it more attractive to potential buyers or renters.
If you need to repair a fence, you have several options at your disposal:
- If the fence is made of wood, you may be able to restore it by replacing missing or damaged boards.
- If the fence is made of metal, you may be able to repair it by welding or patching the holes.
- If the damage is extensive, you may need to replace the fence completely.
Do an online search using keywords like “fencing companies near me” to find the right contractors.
Check the Foundation
A house’s foundation is its most critical structural element. A house will eventually collapse if this is not solid. It’s advisable to have a structural inspection by a professional before you close the deal.
The presence of cracks in the floor or walls is an obvious sign that you should make repairs. A weak foundation can also be detected by windows and doors that are difficult to open or have cracks. They may even have gaps that allow water to seep into the house or pests to enter.
If foundation repairs are necessary, they will be expensive. However, you may not be able to obtain insurance for a property if it isn’t repaired. Additionally, potential buyers or renters may be reluctant to live in a house with this structural problem.
A foundation can be repaired in several ways. Concrete piers are the most commonly used method to support the foundation. It is usually less expensive than replacing the entire foundation. However, if the damage to the foundation is extensive, concrete piers may not be adequate. You will then need to replace the entire foundation.
Repair the Roof
A house with a damaged roof will make it easier to negotiate the price. However, you should hire a professional roofer to inspect it before you close. Of course, as soon as you own the property, you will need to repair or replace it.
There are several types of damage that may occur. One of the most common types is leaks caused by broken shingles, holes, or cracks. Depending on the severity of the damage, you may be able to patch the holes or replace the damaged shingles. However, if the problem is extensive, you’ll need to replace the entire roof.
Roof damage can also be caused by missing shingles. Severe weather events, such as hurricanes or tornadoes, are typically responsible for this type of damage. If you’re missing a few, you\’ll need to replace them immediately. Otherwise, you could risk a leak or other damage.
Your Profit Margin
Buying a fixer-upper can still be profitable. It all depends on the numbers. The worse the condition of the house, the lower the cost of buying it. This will leave you with enough capital to make the necessary repairs.
