Fixer-uppers can be the path to instant equity, or a money pit. The difference is in the math you run before the offer.
Run the After-Repair Value First
Pull comps for fully renovated homes on the same block, then back out a realistic remodel budget plus 15% contingency.
Inspection Is Non-Negotiable
Foundation, sewer line, electrical panel, and roof are the four big-ticket items that can turn a $50K project into a $200K project.
Financing Options
FHA 203(k) and Fannie Mae HomeStyle loans roll renovation costs into the mortgage. Conventional financing requires a separate construction loan or cash for the work.