Should I Consider Buying A Distressed Property?

Are you dreaming of buying a fixer-upper that could become your perfect home or a profitable investment? Before you start swinging that sledgehammer, veteran Colorado Springs realtor Lori Thompson has some crucial wisdom to share about the reality of distressed properties.
The journey into distressed real estate starts with understanding what "distressed" actually means. As Lori explains, this spectrum ranges from homes needing simple cosmetic updates to properties requiring major structural repairs. Your success depends largely on two factors: your personal skill set and your network of reliable contractors. While some investors come equipped with respirators ready to tackle meth-contaminated properties, others find value in homes that simply need a thorough cleaning, fresh paint, and landscape rehabilitation. The key is knowing where you fall on this spectrum and being honest about your capabilities.
Smart buyers know that due diligence is non-negotiable when considering distressed properties. Lori strongly recommends comprehensive home inspections with special attention to big-ticket items like structural integrity ($30,000-$50,000 to fix), sewer line conditions ($15,000-$20,000), and roof quality ($12,000-$20,000). For just $100-$150, having a sewer scope done can save you tens of thousands in unexpected repairs. Financing options exist for those without cash reserves, including the FHA 203k rehab program, though these specialized loans come with specific requirements including using approved contractors. VA loans can still work for properties with minor issues, provided there are no significant health hazards.
Looking for the perfect distressed property opportunity? Lori offers this insider tip: "If the property is real pretty and if it blings, that's probably not your best deal." Sometimes the best values are hiding behind terrible listing photos taken by "lazy realtors" on cloudy days with cell phones. These overlooked gems might just be your pathway to building substantial equity. Ready to explore distressed properties with an experienced guide? Call or text Lori Thompson at 719-332-1807 – because distress doesn't have to mean disaster when you've got the right expertise on your side.

To learn more about RE/MAX Properties Inc. visit:
https://www.LoriThompson.REMAX.com
RE/MAX Properties Inc.
Colorado Springs
719-332-1807