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This can matter for financing, insurance and resale.
Could It Be a Fixer-Upper?
An $80,000 three-bedroom, three-bathroom property may be marketed as a renovation opportunity.
Fixer-uppers can be attractive to people with construction knowledge, renovation experience or access to reliable contractors.Home & Garden
They can also be risky.
The key is understanding the difference between a cosmetic renovation and a major rehabilitation.
Replacing paint and flooring is relatively straightforward.
Repairing a foundation is a different matter.
Replacing a few light fixtures is one thing.
Rewiring an entire property is another.
The buyer needs to understand which category the property falls into.
Could It Be an Investment?
Some buyers will look at a property like this and immediately consider rental potential.
Three bedrooms and three bathrooms can make a home appealing to tenants, depending on the location.
But rental investors should not assume that demand exists simply because the house is inexpensive.
They need to research comparable rental properties.
What are similar homes renting for?Bathroom
How quickly do they find tenants?
What are typical vacancy rates?
Are there restrictions on renting rooms?
What property taxes apply?
How much will insurance cost?
What maintenance will be required?
These questions determine whether a property is actually a good investment.
Don’t Forget Property Taxes
Property taxes can significantly affect the long-term cost of ownership.
A buyer might focus on an $80,000 purchase price while overlooking the annual tax obligation.
Taxes vary substantially by location.
They can also change over time.