Now that you have a little cash to invest, you may be wondering, “Is buying a fixer-upper in Northwest Arkansas a good idea?”
The answer depends on whether you have the money to pay a contractor to do the rehab or the time and skills (or at least the willingness to acquire them) to do it yourself. But most of the time, yes, it’s a good idea. And here are 4 reasons why you should really consider it.
Is Buying a Fixer-Upper in Northwest Arkansas a Good Idea? 4 Reasons You Should Really Consider It
1. Fixer-Uppers Are Usually Genuine Bargains
Probably the number-one reason for answering “Yes” to the question”Is buying a fixer-upper in Northwest Arkansas a good idea?” is that a fixer-upper is, many times, a great bargain. Generally, a fixer-upper costs 20% to 25% less than a comparable move-in-ready home. And you can expect to pay even less for houses with major problems.
You just need to make sure the rehab costs won’t eat up potential profits or appreciation. Experts recommend adding at least another 5% to your projected renovation budget to cover unexpected costs.
2. You Can Earn While You Learn
If you have any DIY inclinations or skills, buying a fixer-upper in Northwest Arkansas can turn out to be paid on-the-job training. If you make all the repairs and do the renovations yourself, you will earn while you learn. Sure, you’ll make mistakes and have to invest more time. But in the end, you’ll likely realize a healthy profit – whether you ultimately intend to rent the house or flip it. And those skills you’ve acquired can be put to good – and profitable – use on your next and subsequent fixer-uppers.
Just be prepared to experience a little frustration at first, along with some banged thumbs and blisters. But where else can you get paid that much to learn a trade as a rank beginner?
3. You Can Get Started Flipping Houses for Profit
But maybe you’re still asking yourself, “Is buying a fixer-upper inNorthwest Arkansas a good idea?” If you are, know that buying a fixer-upper is probably the best and most affordable way to get started flipping houses. A fixer-upper is a good starting point because, until you get some experience under your belt, you may not make much money at first. But that can change fast and in a big way.
In addition, home prices are rising to unprecedented levels. Retail demand for homes continues to be high, with few homes available on the market. Your flip project would probably have a healthy buyer pool waiting to grab it once it’s complete, or maybe even before!
4. Financing is Favorable Right Now
Currently, both rates and terms are favorable when it comes to financing for house buying, with access easy and interest rates still low. So in terms of financing, right now is a good time to buy a fixer-upper.
As favorable as financing is right now, you still might need to look for non-traditional forms of lending such as a hard money lender who can help fund the purchase and repairs with only the property as collateral. Local lenders who are willing to carry construction or renovation notes in house may also be a good fit.
So, is buying a fixer-upper in Northwest Arkansas a good idea? Generally speaking, yes. The pros usually outweigh the cons. Now, all you have to do is find the right fixer-upper that meets your needs and fits your situation.