What are the main considerations when dealing with an extreme fixer-upper?

Construction
1

We’re putting together a story about dealing with extreme fixer-uppers - cases where the house is purchased for < $15,000. What are the main things you have to be concerned with when dealing with these types of properties?

At what point is it easier to just tear something down and start from scratch?

5 Likes
2

stuctural problems with footings and foundations will cost the most and will cost minimum 5,000. to 30,000 . first concern make sure they are in fair conditions

3

After taking into consideration what the others have said, keep in mind re-sale value. Although it may be cheap to acquire, the amount spent on a major remodel may not be worth the effort and time vs. the potential income; I say leave these types of remodels to the experts, rather, concentrate on a property that requires more cosmetic work. Foundation, water intrusion, mold, updating electrical and plumbing systems are all part of an extreme fixer-upper.

4

Regardless of the Project at hand, make sure you research your contractor, check the local Better Business Bureau, any forum sites and call the County Building Office or Town Building Offices to see if their are any outstanding lawsuits or legal actions against the Contractor and make sure that you get a general idea of each project gets done by watching You Tube DYI videos so that you get a general understanding of what should be done versus what shouldnt be done.

5

There are lots of houses around Kansas City, KS that are going for under $15,000. It’s usually because the repairs end up costing more that the house is worth. Most of the people purchasing these houses are not on the up and up and use unlicensed guys to do the work.

Some of the most common problems are as follows. 


	Drain Lines - If there is cast iron, you may need to replace all of the plumbing including the main line out to the sewer. 

	Flue - Most of the flue's in these old houses need to be relined. 

	Electrical - Any house not on breakers will likely need some updating with the electrical. 

	Structural &amp; Foundation - As mentioned in other replies this can be expensive. Finished basements can cover up problems on the horizon. 

	Roof

	Siding

	Heating &amp; Cooling

	Dealing with Lead Paint

	Driveway

	Supply line - If the supply line is galvanized, it may only have a few years before needing to be replaced
6

As already stated more than once… Structural, structural, structural! From the foundation to the roof. Foundation footings(or lack thereof) seem to be a hot topic. Age of home is a factor in plumbing and electrical along with lead or asbestos and potential for needing abatement of both(very costly). Beyond that, I have done many homes for investors that were in extreme condition but within a budget where decent profits have been made. In Washington I have found permitting and inspections go much better on a remodel as compared to demolish and rebuild new. Only 1 wall basically needs to stay intact to be considered remodel. It affords you opportunities and leeway that you won’t get in a new construction atmosphere. Get a quality contractor to work with you, and the earning potential is unlimited, and most stay away, giving more value to your offers.

7

With the electrical one important thing to consider is what shape the wiring is in. Is it Knob and Tube does it have grounding. A lot of time when going into a home that a customer has bought if I notice that the previous electricians have done there work according to the code in there era, and the wiring is in good condition there is no need to replace it. But if it is knob and tube I replace the wiring. If the previous wiring was not done to code I will replace it.

8

If you buy a house for < than $15k and your looking at a complete gut of the house. With that said your only concerns left would be foundation, structure and location.