Buying a fixer-upper for my first main residence in Philly
Hi all,
I'm moving to Philly next summer.
Looking at the properties available publicly on Zillow, Redfin, etc., I concluded that the house I like to live in is at least 850-900k somewhere around Ardmore, Narberth, Chestnut Hills, or similar areas (I do not like to live in a townhouse).
I have a 10% downpayment available for this amount but I am also qualified for a mortgage (5.7% interest) with no downpayment and no PMI. However, even with a 10% downpayment, the monthly mortgage payments + home insurance + property tax + maintenance fee for an 850k house is a bit out of my comfort zone since it's my first house (I have the money, but I really want to be conservative on the first house).
Therefore, I'm considering buying a fixer-upper of around 500k instead of a turnkey and spending ~80k on the renovation (I have no experience in flipping and this is my first home purchase ever).
I know it will take at least 4-6 months for me (with no experience) to renovate, and will cost more than usual, but I'm counting this as the price I pay for the learning experience.
I have two questions for you:
1) Do you think it's a bad idea in this market given my lack of experience?
2) Is it safe to assume that a fixer-upper in areas like Ardmore, Narberth, and Chestnut Hills that is negotiated around 500k in this market after an 80-100k renovation will be in the same shape as a turnkey that is worth 850-900k?
I highly appreciate your input.
Most Popular Reply
Hey John,
I'm not familiar with the Philly market but with my experience, I would definitely recommend looking for a fixer-upper. We are entering a buyer's market right now so I think you can find a good value fixer-upper by sending several offers a week.
Always estimate the worst when flipping.
Good luck,
David