Putting in some sweat equity to make a home that has seen better days look like the place you envisioned can be rewarding... if you know what you are doing or have access to people who do. Before you take on this challenge, you should take a few factors into account.

Scope of work

Do you know the amount of work that will be required? Even if you are handy and planning to do all or some of the work, you should price out any of the projects that you will want to do. Do you have that amount in your budget plus 10-20% for the unexpected? How long will the projects take and do you have a space to live in during the projects or would you be able to live in the property during the renovations? A fixer-upper can be a good idea for some, but before you dive in, you should get a good idea of what you've signed up for and be ready for a few surprises along the way.

Structural issues

Structural issues can halt a renovation. Before you make an offer on a fixer-upper, make sure you have an inspection by a professional to help you detect any red flags that can take a toll on your budget and cause a lot of frustration. A trained inspector should be able to tell you if the foundation is solid and if the framing, electrical system, and plumbing are up to code. They will also note other potential issues that may need attention. If there are any major repairs that need to be made, it's important to factor those into your budget.

Restrictions

If you're thinking of buying a fixer upper, you need to make sure you can complete the renovation the way that you want. It's important to check codes and the permits required for certain projects. If the home is in a community with an HOA, you may need to get their approval on certain items. Thinking you'll get approval after the fact can be a costly gamble.

Overall Budget

Before you dive in, you must consider the budget. How much can you afford to spend? Remember, you'll need to factor in not just the purchase price of the home, but also the cost of renovations (including additional loan options if needed). If you are looking at the fixer upper as a rental opportunity, be sure to look into the costs involved with that.

Be flexible

If you're thinking about buying a fixer upper, you need to be flexible. Chances are, there will be some surprises that come up no matter how prepared you are before buying. Just make sure you do your research first, have a realistic idea of what needs to be done and are willing to adjust the plan when needed.

If you're considering buying a fixer upper, there are a few things you should take into account. First, make sure you have the time and money to invest in fixing it up. You should also be realistic about what you can fix yourself and when you'll need to hire professionals. Finally, make sure you have a clear idea of what you want the finished product to look like, and find a fixer upper that fits that vision.