Do you buy fixer upper or already done for a rental?

[Heather Rodden]

Typically do you buy fixer uppers, or houses that are done and ready to rent? I can find nIce 2-3 bedroom houses in my area for around $50-70K. I can find foreclosures for various prices. For example I found one for $35K, but it needs a new roof $6K and has to have mold removal, and remediation. Which I got a quote for and is $8500-9000. So in my eyes, buying something done and pretty much move in ready is the way to go. Since I’ll be immediately making money as soon as it is rented (usually less than 30 days). Do you have any other opinions or advise? The forcloser is listed, so it is probably more expensive than hitting the initial auction at the courthouse.

[Sam LLoyd]

I think the answer lies in what you have to offer.  For example.  I do most of my own work, so If I buy a house that needs new paint and roof, I'd be paying less than half of the repair cost just in material... and keep what I would pay a contractor... or pay a seller because they just paid a contractor.   If, what you have to offer is the ability to find properties at incredible prices through marketing, then you'll probably get houses that need work.

 So, if you're not going to do the work yourself, or if you don't have some magical contractor that can do it cheeper (and better) than anyone else, the only reason not to buy it finished is if the price you get it for, combined with the price you're paying to fix it, combined with a very healthy margin for your risk and the inevitable surprises.... There's no reason not to buy it finished.

Summary:  from the info you gave, buy it finished.