14. Fixing Up the Home Won’t Make It Overpriced for the Market
Before you pour tons of money into a fixer-upper, make sure that you’d be able to feasibly recoup your investment based on the prices of other homes in the neighborhood.
“With rehab projects, understanding what the local market can handle is important,” said Ray Sturm, CEO of AlphaFlow, which focuses on flips and real estate investments. “As the ultimate goal with rehab transactions is to add value to the property, does the overall project goal make sense for the market? Is the buyer looking to turn a home in a $250,000 neighborhood into a $1 million home? If so, it’s likely the initial buyer will have a hard time selling the home as it stands out in its neighborhood.”
