So you are thinking of buying a foreclosure or fixer upper, fixing it and reselling it. Perhaps you're looking at a Waterford Twp Michigan foreclosure for sale. The key is in planning, good estimating. The oft heard phrase "Buyer Beware" is never more appropriate than when considering the purchase of a fixer-upper. You must know exactly what you*re getting into before buying a Michigan home that you consider a fixer upper.
It's commonly believed that fixer-upper properties represent easy money that is ripe for the taking - that you can buy it, do a little work on it in your spare time, then flip it (sell it) and make lots of money. This isn't the case most of the time. Although, with proper planning and thought, money can be made by buying *fixer uppers*. And for many first time buyers who intend to live in the house while working on it, buying a fixer-upper can be a great option. By buying a fixer upper you get sweat equity. You will gain equity in the home by bringing it up to normal standards. The key is to buy a home below market price and to be able to put less money into it than a comparable good home. If you can buy a ready to move in home (in top shape) for $200,000 and you want to buy a fixer upper for $150,000. Then you should not have to spend more than $25,000 to fix it up to make it a deal. It*s also less risky buying a fixer-upper when you can live in the house while fixing it. And of course, by living in the house for at least 24 months you should qualify for the IRS exemption of no capital gains.
The most important thing to know before making a decision on such a purchase is what needs to be fixed. Do a spreadsheet. Jot down all the costs. Give yourself a cushion for unseen expenses. Any time you are spending money on improving a home with the notion of selling it later, strive to spend your money on things that buyers can easily see. Things like new paint and removing trash from the property cost little but have instant impact on curb appeal. Simple landscaping is the best. Landscaping does not bring a large return. Houses that have only cosmetic problems like peeling paint, an overgrown yard, shag or worn carpet or lots of wallpaper are the best bet. Fixing and cleaning cosmetic issues is fairly easy and inexpensive. It virtually always gives a good return on investment, particularly when you can do the work yourself. Kitchen and bathroom remodeling usually pays a nice return. Don*t be afraid of buying a fixer-upper in need of this kind of repair. Again the key is don*t go over the top. Do a good job, a nice job. But if it is a $100,000 house you don*t want to put in Granite counter tops and a jetted tub. Properties with structural damage, or a floor plan that requires major work to remedy, may not be "fixed up" at a profit.
What about the cost of the mortgage and interest? If you are not living in the home, the mortgage payment is a cost! If it is going to take 4 months to fix it up then figure the payment as an expense. A $1500 payment adds up. In four months it is $6000 of profit eaten up. What happens if the house doesn't sell right away? What happens if you have to sit on the house for 10 months? At $1500 a month then $15,000 of your profit is gone. If you are not going to live in the home there is one last thing item to remember is that if it is a second home, or investment property (in Michigan) you do not get the homestead exemption. Your taxes are going to be much higher. Approximately 40% higher. You have to figure that in as a cost also.
Whether the fixer upper is a Waterford Twp Home foreclosure for sale or any other foreclosure home you have to be extra careful in a buyers market. It is going to take time to sell. can you afford the mortgage payments while you are trying to sell it?
Below is a list of Waterford Twp Michigan foreclosures for sale. Here you have every type of home; from $30,000, 2 bedroom, 1 bath bungalow to $299,900 waterfront beauty.
|ADDRESS||BATHS||BEDS||SQ FT||BASE'T||GARAGE||LOT DIMEN||LP PER SQFT|
|496 MARION AVE||1||2||959||Y||Y||50X264||31.2825|
|960 LAKEVIEW ST||2.1||2||1452||Y||Y||50X115||27.5482|
|1367 GENELLA ST||1||2||973||Y||Y||80X180||46.2487|
|5822 OSTER DR||1||2||720||N||N||50X116||68.0555|
|2610 SYLVAN SHORES DR||1.1||2||1324||Y||Y||45X158||37.7643|
|1093 LA SALLE AVE||1.1||3||1356||Y||Y||50X200||45.7227|
|371 HILLCLIFF DR||1||3||1292||Y||Y||100X200||51.6253|
|1270 FLORENCE AVE||2||3||1891||N||Y||75X100||37.0174|
|90 CRISTY AVE||3||4||1357||Y||Y||200X70X150X130||55.9322|
|5790 SAVOY DR||1||2||756||Y||Y||50X123||105.6878|
|1373 OREGON BLVD||1||3||1226||Y||Y||40X120||67.4551|
|4078 LOUELLA DR||1||2||870||Y||Y||40X130||103.1034|
|453 LAKESIDE DR||1.1||3||1120||Y||Y||50X155||82.7678|
|3909 MAPLELEAF RD||3.1||4||2462||N||Y||50X141||40.2112|
|2361 MARWOOD DR||1.1||3||1120||Y||Y||40X186||89.1964|
|5872 STRATHDON WAY||1.1||3||1420||Y||Y||75X150||73.7323|
|953 MEADOWLARK DR||2||3||1329||Y||Y||70X135||78.9315|
|4785 SYLVESTER AVE||2||4||2068||Y||Y||75X200||50.7253|
|2861 AIRPORT RD||1.1||3||1510||Y||Y||80X147||79.4039|
|2515 DRIFTWOOD DR||2||3||1384||Y||Y||60X130||86.7052|
|2897 PEERLESS AVE||2||3||1521||Y||N||40X120||88.5601|
|1243 NANCYWOOD DR||1.1||3||1610||Y||Y||75X150||83.7888|
|1401 ROSSDALE DR||3||4||2402||N||Y||85X50||66.5695|
|5912 KING JAMES LN||2.1||4||1920||Y||Y||67X120||86.4062|
|3165 COVENTRY DR||2||2||1226||Y||Y||80X145||142.659|
|3243 SCHOOLHOUSE DR||2.1||3||2240||Y||Y||113X121||80.3125|
|5013 ELIZABETH LAKE RD||1.1||2||2097||N||Y||100X146||104.7687|
|4956 COOLEY LAKE RD||2.1||4||2576||Y||Y||92X41X244X265||116.4208|
So if you're looking to fix and flip or just want an investment property that you can make some money on, please feel free to give me a call on my cell at 313-310-9855 or email me at firstname.lastname@example.org. I have a wealth of information on foreclosures, fixer uppers, and investment property and I'm here to help you!
Do not let somebody else get the best home deals. Join my Foreclosure VIP club and get the newest lakefront foreclosures and the newest lakefront listings emailed to you daily.