Home Selection

[lettuceman]

First I hope this isn't too general off a question but at the same time I want it to be a generalized question.

Given that the market is down (I am in the metro Detroit area) is it better at this current time to buy something that needs little work or something that is more of a fixer upper? I am not opposed to doing work to make a house better and turn a possible profit in 3 - 4 years (I expect to move for job purposes and/or upgrade in this time frame). My price range is in the 165-199 area.

On a related note: I am interested in two homes, one is in need of repair built in the 1950's. The second built in 1917 appears to have been almost completely redone in 2002 (a flip perhaps as it was bought for around 100 in 2001). Given Presuming there is some upgrade potential left in option 2, which is the better way to go?

[IggysListing]

Let's look at this decision from "20,000 feet".
What are your short term and long term goals?

[VancouverWa]

Hi lettuceman,

First thing, I like lettuce too.

The Detroit Metro area, hmmm. I hear this market is going through some tough times. That could only mean one thing - great time to be a buyer or investor lettuceman.

"is it better at this current time to buy something that needs little work or something that is more of a fixer upper?"

I'm going to assume the first 3 things are satisfied: Location, location, location. Sounds dumb, but if your going to fix up a house that overlooks a freeway not a smart move or if the cost of remodeling makes your home more expensive than the rest of the neighborhood. Are you doing the remodeling? How much is your time worth?
I would say it depends on the price you pay to secure the property and it's location and condition.

Whichever one you decide upon, make sure you get a full home inspection. It may reveal things you had not considered to be a problem.

[kwaltersmi]

Are you planning to stay in the home long-term? Or do you plan to move on in a year, 2 years or anything less than 5 years? If that's the case, I go for the option one and get some sweat equity.

[panamamalcolm]

Yes,
If i were you i would go with option 2 as if it was fixed up in 2002......the less you have to do in repairs and the higher the resale value....good luck