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Are Kitchener fixer uppers a good idea in bad areas?
It depends. Distressed properties or fixer-uppers can be found anywhere, even in wealthier neighborhoods. Such properties are poorly maintained and have a lower market value than other houses in the neighborhood.
Many Kitchener market experts recommend that before you make such an investment, first find the least desirable house in the best neighborhood. Then do the math to see if what it would cost to bring up the value of that property to its full potential market value is within your budget. If you are a novice buyer, it may be wiser to look for properties that only need cosmetic fixes rather than run-down houses that need major structural repairs.
Some of the biggest mistakes novice rehabbers make are over-improving a property and under estimating the costs associated with the rehab. A smart rehabber will always factor in a 'things happen' cost. If you are a novice rehabber you should add about 25% higher costs from your initial estimates to cover the 'things happen' fund.
One of the most important things to consider is your exit strategy. Successful rehabbers all know that things happen during a rehab project that are sometimes out of their control. To be a successful you must consider different scenarios and exit plans for every project. Having an A, B and C plan for your exit strategies will help mitigate your risks and provide peace of mind.
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