Fixer Uppers - What To Fix First

Fix And Flip Course

Have you watched those television shows about fixer uppers? You should. Shows like "Flip That House" and others have a parade of first-time investors making mistakes that you can learn from. One mistake that I have seen repeated several times recently is that of running out of money before the eye-appeal stuff is done.

For example, one poor guy (on a show the other night) made the inside of the house beautiful, but didn't have the money to paint the stained front wall outside, and to fix up the poor landscaping. As you can imagine, he had a hard time getting buyers inside to see that beautiful interior. Perhaps he should have done that "first impression" stuff earlier in the project, before he ran out of cash (he was $10,000 over budget too).

This brings up the question: What should you do first on those fixer uppers? Time becomes an issue at some point, after all, and profitability requires a limit to the spending, even if you have the money to do whatever you want. Of course the order of some things isn't optional. You have to finish the wiring before you put up the drywall, for example, and the drywall has to be up before the painter comes. But to the extent that you have some flexibility in when you do various tasks, try the following order.

1. Necessities

You can't expect to flip a house for top dollar if the roof is leaking or the shower doesn't work. Fix the absolutely necessary things first. This includes leaky roofs, water heaters, furnaces, plumbing and electrical systems. It also includes safety items like stairway railings, door locks and smoke detectors.

2. First Impression Stuff

Once the necessities are done, move on to the things that buyers will see first. This means the front of the house, including the yard and the house itself. If there won't be workers trampling it, do the landscaping early in the process. This gives you more time to get the grass thickened up too. Patch the driveway if it needs it, and have a nice front door. Have a friend (someone not working on the house can be more objective) drive up and report on any negative first impressions as she sees and enters the house.

3. Low Cost / High Return

Everything is working and first impressions are prepared. Now look for low-cost high-return repairs and improvements. This way, if you do run out of money at some point, you have gotten the most "bang for your buck." A new mailbox with flowers around it, for example, can cost less than $30 and make a house more cheerful. Other things that usually fit this low-cost high-return criteria include new outlet and switch covers, cupboard knobs, new stove burner pans, and a thorough cleaning of the house (this may have to wait if there is still a lot of work being done inside).

4. All The Rest

Once the essentials, the first impression makers and the lowest-cost / highest-return things are done, it's time to do the rest. Now if you run out of time or start getting over-budget, you can change plans if necessary without jeopardizing the success of the project. You can decide to go with carpet instead of hardwood flooring for that second living room, for example, to save time and money, or you can forget replacing the bedroom doors and opt for cleaning and new knobs instead.

Fixer uppers will always have surprises, and often take more time or money than you might like or plan for. But if you make your repairs and improvements in the right order, the problems don't matter nearly so much when and if they come.

Steve

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Tips For Flipping A House | Fixer Uppers - What To Fix First