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Buying Advice

Let’s Do the Math on Your Fixer Upper

So you want to buy a house, flip it, and sell it for more? Sounds sweet, but is it? Use this simple sheet to decide if your fixer upper is financially worth it.

Projected Sales Price

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Down Payment

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Mortgage Payment

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Taxes and Fees

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Cost of Material

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Cost of Labor

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Worth It:

You have time and capital… but most of all patients. According to Zillow the average home in Maui increased in value by 7.1% last year. Zillow predicts the average home in Maui will increase in value by 3% this year. This is great news. General market trends combined with low mortgage rates will make your fixer upper dream a reality!

Tip: Don’t forget to let your lender know that you are planning to flip the house. Often, there are mortgages that have low initial rates, that increase after x number of years. This could be advantageous to you if you plan to sell your home before x number of years.

Not Worth It:

This is great news too! There are many turnkey vacation rentals that your favorite local real estate agent can show you. This is another way to generate income. Think of it like stock in the market that pays out great dividends every year.

If this is where you lean please check out my blog Let’s Talk Income Property: Buying a Vacation Rental on Maui and feel free to reach out to me with any questions you may have.

Aloha,

Lena

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