How to find fixer uppers in your area is something that many people contemplate, but not many of them know how to do. Others think about it but do not act on it, and so many grand opportunities slip by. Many of us are aspiring real estate investors, particularly when it comes to fixing and flipping homes, but often need a little nudge and a few ideas to begin house hunting.
Many people want to invest in real estate by flipping houses because this form of property offers excellent opportunities to obtain money. This guide is for you if you’re new to real estate investing and want to learn how to find fixer uppers in your area. We’ve outlined seven different methods for quickly searching for and locating fixer upper houses for sale.
What Are Fixer Uppers?
Fixer uppers are dwellings that require repair and are usually offered at a lower selling price. Therefore, they can provide a significant profit opportunity for investors in real estate until they are repaired and sold or rented, depending on what the new owner desires.
Fixer upper properties can come with minor issues or a myriad of problems, including. When considering how to find fixer uppers in your area, including getting a property attorney, the law (local ordinances), and to check properties nearest to you first.
Many times the roof might be in a state of disrepair or need replacement altogether, therefore requiring a roofing contractor. The last three significant areas that may need fixing or replacement are:
In today’s housing market, many of the fixer uppers for sale are homes in default or properties that have been repossessed by lenders, typically due to non-payment of mortgages or taxes.
Drive Through the Neighborhood
Fixer uppers are a dime a dozen in many communities. The problem is, you weren’t looking for them previously, so they weren’t noticeable then.
Driving through the neighborhood is the first method on our list of how to find fixer uppers in your area. These include townhomes, single-family, and multiple-family houses for sale. Get in your car and drive around your preferred neighborhood, looking for neglected or abandoned places.
These houses are usually distinct from the majority of the neighborhood’s homes. It would be best if you looked for signs such as unkempt lawn care, smashed or boarded up doors and windows, fading or peeling paint, delayed repairs, multiple newspapers on the front porch or driveway, and so on.
If you come across a property that exhibits some or all of the signs mentioned earlier, take down the address, so you can figure out the owner of the property once you’ve completed your fixer upper search.
Search the Multiple Listing Service (MLS)
The Multiple Listing Service, or MLS, is an ideal way when thinking how to find fixer uppers in your area for sale. The Multiple Listing Service (MLS) is the authorized database for every property listing in the United States.
You’ll need a real estate license to get access to it, but if you don’t have one, you can still liaise with a real estate agent or broker.
Search for ‘Short Sale’ or ‘Real Estate Owned (REO)’ listings for properties on the MLS to discover fixer uppers for sale. Those types of sale signs typically indicate damaged properties that are up for sale. Search for dwellings that have been on the market for longer than ninety days.
Homeowners who have had their place listed on the MLS for longer than ninety days are not merely inclined to be inspired to sell, but they may also be hanging onto a fixer upper that no one else wants.
Only make sure to examine those properties to see what other prospective purchasers were looking for in the event that’s what was happening.
Search for Auctions
Another way how to find fixer uppers in your area for sale is through real estate auctions. You’ll be able to find all types of foreclosed homes, at all points of the foreclosure phase, at auctions, which will provide an abundance of chances for a bargain buy.
However, keep an eye out for possible bidding wars. Try to learn about forthcoming auctions in your region by looking in your local newspaper or visiting the county courthouse.
After that, you can go to a few and bid on whatever investment properties you want. You may also look for various categories of enterprise properties on sale in your focus area on online auction websites.
The platform will then enable you to put a bid on these properties. Auction.com is a good representation of a real estate auction site.
Using Websites for Real Estate Investors
Another common avenue used by newcomers and professional real estate agents when considering how to find fixer uppers in your area for sale is websites for real estate investors.
This is just in the same way that you can look with a conventional investment property search. This property marketplace online tool offers access to numerous off-market real estate listings in the United States.
Foreclosures, short sales, bank-owned houses, and auction properties are all examples. You may also use a filter only to see investment properties that are up for sale and may require maintenance, ensuring that you spend your time looking at and reviewing fixer uppers.
Using Filters Is a Great Place to Start
Note that if you sign up with a real estate marketplace company, you can use the ‘foreclosure’ filter in their search app to find only foreclosure properties for sale on the site.
Other filters like budget, bathrooms, bedrooms, cap rate, and even cash on cash return, will help you narrow your quest to properties that meet your needs.
Carefully look for a company as they do not all offer the same thing. Some real estate websites differ in that they help you assess the investment value of properties you find on the site, including properties that are not listed on the market.
For example, if you locate a fixer upper investment estate that you intend to renovate and rent out, you can use the site’s built-in property calculator to assess the property’s profitability using metrics like cash flow, cash on cash return, and cap rate. The study would also help you understand the renovation costs and how they will impact the return on investment (ROI). Now is the time to put it to the test.
Use the Websites of Banks and Lenders
On your quest for how to find fixer-uppers in your area for sale, you’ll see that houses for sale can be found in a variety of places, not only on real estate investor websites. You could also locate them on the websites of banks and lenders.
Most banks and lenders have a dedicated section on their website where they list all the foreclosed estates they presently control, commonly labeled ‘REO’ or ‘Bank-Owned Homes.’ Another thing worth knowing is that financial institutions prefer not to keep assets in their hands, choosing instead to sell those properties to real estate investors once the opportunity arises. If you’re searching for a fixer upper at a reasonable price, looking through the listings of properties owned by banks can be a promising idea.
Examine the Tax Record
Sifting through tax reports for properties with unpaid taxes is next on the list of how to find fixer uppers in your area for sale.
Tax arrears are an indication that the estate owners are having financial difficulties. It also means they’ve probably put off repairs and are now dealing with a fixer upper.
It’s not challenging to locate properties that have unpaid taxes. Your local tax assessor’s office or website will provide you with a list of every property that is delinquent on its tax payments throughout the entire state.
Engage the Services of a Real Estate Agent
You should always employ a real estate agent with house flipping experience if you’re serious about seeking successful real estate offers. This for your real estate investment plans involving both houses that you intend to sell or rent.
Keep in mind when seeking how to find fixer uppers in your area for sale that a competent agent will know where to look for the potential properties and will do everything possible to give you the best price. They have an extensive network of real estate experts such as wholesalers, lenders, and servicers for loans, who can point them in the right direction to a wide range of distressed real estate dwellings that aren’t available anywhere else.
They also have immediate access to the MLS and extra services that aren’t available to the public, as previously stated. As a result, they will assist you in your quest on how to find fixer uppers in your area(also called investment properties) and also assist you in obtaining them at the best possible rate.
Do People Wish to Relocate In Your Area?
If this is the case, your property would most likely sell or rent for a higher price than it did previously. Yes, the home you want to purchase will be more expensive, but it will appreciate as long as buyers find value in living there. You can estimate how long these people will continue to come if you understand why they want to travel. This question can be answered in various ways, depending on how you define your area, which can range from a geographical region to a single city block.
Do People Want to Leave Your Village?
If this is the case, your property can sell or rent for less. However, you can get the property you want for a lower price. Understand what is causing people to leave, so you can guess how long it will take them or others to return.
This situation may be an excellent opportunity for you to purchase distressed properties and place them on the market for rent until the demand changes.
What Is the Price Range for Houses Now?
If you understand this, you’ll be able to estimate how much the assets you own and those you wish to purchase are worth to others. The more accurately you can measure consensus price, the more accurately you can predict the return on each investment.
Of course, rather than listening to your friends, relatives, or local real estate agent, you can use a real estate investment appraisal tool to get the numbers on a potential investment property for yourself.
Knowing the answers to these questions will help you decide if buying local properties is a good idea and what to anticipate from them if you do. However, for all of this to happen, you must first be able to purchase assets.
You’ll need leads to do so. Look at all the things you’ll need to get done on the house in addition to obtaining the services of an attorney and understanding the municipal law in your target area. These include:
- drain cleaning
- tree trimming service
- home remodeling
- bathroom remodeling
- furnace services
- roofing contractor
- ac repair
- water heater and more.
That concludes the list of essential strategies when contemplating how to find fixer uppers in your area for sale. Some of you might question which of these strategies is the best if any. Well, many, in fact, all of them have been tried and proven. However, there is still no one-size-fits-all technique when it comes to real estate investing. There are numerous methods available, and you should investigate them all. Rather than sticking to one strategy, we recommend that you combine many. You’ll be in a great place to find a fixer upper that meets the criteria.
So, what’s next? If you’ve found a fixer upper, you’ll need to figure out how much work is fixer upper how much it will cost to repair it. Then, to ensure it’ll be a good investment, you’ll need to measure the property’s value after it has undergone repairs.