Buying starter home, can't decide whether to go with house that doesn't need updated, and house that does?

Question

I am looking at 3 different houses for my first home (starter home). My plan is to live in it about 5-7 years and then sell to buy my dream home. House number one: Needs about 25k worth of remodeling and updating but has a lot of potential. I can probably get it for around $105k. I would guess that after the work, I could possibly get 140-145k out of it when I go to resell but the work isn't going to be easy. House number 2: Doesn't need much, has been updated for the most part. I would say it needs 6-8k worth of updates and remodeling. I can probably get it for around 110k. House number 3: Doesn't really need anything, other than customizing it a little by painting. I can probably get it for around 115-120k and is the newest house of the 3. My main question is, since this isn't going to be the house I want to live in forever, which would be my best option for a starter home that I would like to resell in about 5 years or so. House number one has the most potential, but I know when you remodel you could always find some unplanned things that cost more money. I don't know if I should go with a house that needs nothing or very little updates, or go with the one I can spend some money on and hope for a bigger return when I sale. I would appreciate any help or advice I could get. Thanks

Answer 1

House number 2 or 3. You would not get your $ back from the remodeling needed on #1.



Also, living in a house that is being worked on is a pain.



Buy the one you like best, because you may be in it for 20 years. Prices and interest rates are going up, and not every job is always secure.

Answer 2

Houses seldom actually need updating it is a want if you just don't like it. It is a modern thing that everyone thinks they need to update. My house is from 1948 and I have had it sense 1992 but never updated anything unneeded. I remodeled two bathrooms because a pipe broke but the kitchen is the same as it was over 20 years ago and might be the same as it was 65 years ago. I might like new counters but these work.



I suggest you buy the one you don't hate and then don't update it or go ahead and get one already updated.

Answer 3

Do you enjoy remodeling, working on house, working with contractors, accomplishing change? If so, go with first home, otherwise 2 or 3.

This home is stepping stone to goal....

Which best helps you to that goal? A lot of decision making is based on personal needs, wants, goals....so only you can answer.

Answer 4

Get the fixer upper

Answer 5

if your end goal is to buy a house of your dreams then I would buy the cheapest house you can find.

Answer 6

3 most Important things to look for,

LOCATION, LOCATION, LOCATION!

Nothing else matters.