Turning a Profit on that Foreclosure Property in Georgia

In some U.S. states like Georgia, the housing market continues to climb, and many buyers are investors with cash in hand, reports the Star Tribune. Picking up inexpensive foreclosures, fixing them up, and reselling them can net you a profit, as long as you watch your repair and remodeling budget. There is a lot of potential for housing profit in Georgia right now, if you make the right investment. Here are a few tips to keep you from making a bad property investment.

Get a Professional Home Inspection

Your first step is to know what you’ve gotten yourself into by having the home thoroughly inspected. You bought the foreclosure “as is” and the condition could range from a newly vacated home to one that was abandoned years ago. The inspection will tell you whether you can spend a little money to make it move-in ready, or whether you should just sweep it out and sell it as a major “fixer upper.”

Roof Repair

Repairing a roof could range from a few hundred dollars to $5,000 or more for a replacement, says Home Wyse. Sometimes the true damage isn’t detected until workers begin tearing off the old material. If you suspect that the roof needs a lot of work, have a roofing company do an inspection. A persistent leak over several months could have caused even more damage in the attic, with rotting wood and wet and useless insulation. Not only does roof repair have a high ROI, but you’re protecting the rest of the home investment by preventing more damage from happening.

Siding Replacement

MSN Real Estate suggests replacing the exterior siding with a modern fiber cement product. Siding returns 78 percent on average, based on an installation cost of $13,000. Fiber cement is durable, low maintenance and resistant to heat and cold. This an ideal product to use in frigid winters.

Be a Good Neighbor

With major remodeling projects such as a roof and siding, you’ll have a lot of scrap material to dispose of. Keep the property clean and the neighbors happy by taking care of that waste quickly. Review your options with companies such as Next Day Dumpsters rental and find out what their delivery and takeaway policies are. If there is room, keep the dumpster in the driveway and off of the street. If you are planning to do some major remodeling and you still need to clean out the house, you may want to get a 30-yard dumpster so you have plenty of space for waste material.

Windows and Doors

Along with the exterior siding, the window and doors may need attention. If they or their frames are rotted, they’ll need to be replaced. Otherwise, sanding and painting may be enough. Make sure all openings are sealed well for the energy-conscious buyer.

Kitchen Remodel

The Street recommends a limited remodel of the kitchen, which can net a 75 percent ROI. New faucets, sinks, refinished countertops and all new appliances start the project. Clean and paint the cabinets and install new hardware. The floor and cabinets should not be replaced, if possible. This freshens up the kitchen without undergoing the cost of new flooring and cabinet installation.

Other Interior Work

With the major ROI items completed, clean and paint the other rooms. Clean the carpets. Install new light switches and electrical outlet plates. Clean or replace old light fixtures and install new bulbs everywhere. From here it’s just a matter of making the house ready to stage and show.