June 1998

Volume 2 Issue 1

Buying and Re$elling A "Fix-up House"

ACHIEVE
To Achieve Your Dreams, Remember Your A-Z

A-void negative sources, people, things                                          and habits.
B-elieve in yourself.
C-onsider things from every angle.
D-on't give up and don't give in.
E-njoy life today: yesterday is gone  and tomorrow may never come.
F-amily and Friends are hidden trea sures.  Seek them and enjoy their  riches.
G-ive more than you planned to give.
H-ang on to your dreams.
I-gnore those who try to discourage  you.
J-ust do it!
K-eep on trying, no matter how hard it  seems. It will get better.
L-ove yourself first and foremost.
M-ake it happen.
N-ever lie, cheat, or steal. Always  strike a  fair deal.
O-pen your eyes and see things as they  really are.
P-ractice makes perfect.
Q-uitters never win and winners never  quit.
R-ead, study and learn about every thing  important in your life.
S-top procrastinating.
T-ake control of your own destiny.
U-nderstand yourself in order to better  understand others.
V-isualize it.
W-ant it more than anything.
X-ccelerate your efforts.
Y-ou are unique of all of Nature's cre ations. Nothing can replace you.
Z-ero in on your target, and go for it!!

A "fix-up house" or "handyman's special" is a basically sound, well-located, single-family house that is in need of improvements. Percentage-wise, once these budget houses are fixed-up, they often have a better appreciation value than expensive houses. Because improvements are needed on the house, the investor is able to buy it below market price and immediately upgrade it for a quick resale, or for a long-term rental investment. Here are a few guidelines to consider about such an investment plan:
 Whether you do most of the fix-up work yourself or hire someone to do it, this kind of investment requires your daily attention.
 Avoid houses that need major or costly work that does not add much market value. This includes a new roof, new foundation, plumbing, wiring, and termite or dry-rot repairs. If you are unable to evaluate such items, hire a professional.
 When initially considering the house, there should be an opportunity to substantially increase market value with basic, inexpensive improvements, suc as painting, carpeting, floor

sanding (where needed), tiling, landscaping and making minor structural repairs.
 Only make major improvements that are known to increase buyer interest, such as modernizing the kitchen and bathroom, and adding needed or new utilities. Adding a fireplace, for example, will increase the market value of most houses.
 Follow this general rule-of-thumb: for every one dollar spent on an improvement, be sure it adds at least two dollars of market value to the house. Transforming a house from an ugly duckling into a beautiful swan can be profitable!

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