7 Signs Your Fixer Upper Is a Money Pit (and Not a Money Maker)

One man’s trash is another man’s treasure. The same can be said for homes. Where one person sees an outdated, rundown home, another may see unlimited potential. But, sometimes that old house isn’t worth trying to recover. It takes a keen eye and a working knowledge of construction to understand what a property will need to be remodeled successfully. Here are seven signs that a home may be more trouble than it’s worth.

1. Fractured foundation. Look in the basement at the walls and floors. Hairline cracks may not mean anything more than normal settling. Cracks wider than a pencil may be a sign of a major issue that could require an engineer (and lots of money) to repair.
2. Damp smell and signs of moisture. Basements naturally tend to be moister because they are set within the soil. Sometimes moisture issues can be repaired simply with some patching and sealants. Other times, you’ll have to dig up the outside of the foundation only to find major corrosion of the cinderblocks that may require an engineer’s assistance.
3. Roof damage. Installing a new roof is standard in flips, nothing shocking there. But, if the current roof shows curling tiles or holes, there could be interior damage that resulted from years of being exposed to elements. Runaway water can cause havoc on a structure.
4. Outdated electrical. Bad or old wiring is not only costly to repair, it’s a hazard to your safety. If you see outlets lying parallel to the floor in the trim, you’re probably looking at knob and tube wiring, common in old homes. It is unsafe and will require a total rewire to meet code. Electrical repairs can be a major money drain when it’s at that level.
5. Damaged siding. This one seems like a simple fix, just a sanding and repaint, right? But sometimes that damage may not be caused by the outside, but by wet conditions inside. Additionally, re-siding a home is not a cheap undertaking.
6. Hazardous materials. There were plenty of materials we used to build with that we found out later were very bad for us. Asbestos and lead paint can be costly to remove.
7. Questionable location. You may think you found a diamond in the rough, a perfect fixer upper that hits all your needs, but it’s in a bad location. Whether that means it’s next to a highway or in a rundown neighborhood that you are hoping will be revived someday and you’re getting in on the ground floor. Keep this in mind, your location isn’t something you can renovate. If it’s a beautiful house in terrible spot, you’re going to have a tough time getting your money out of it.

Fixing up an old property can be very rewarding, but you need to know when to hold ‘em and know when to fold ‘em so you don’t take a total bath on your hard work. It’s also a good idea to take care in your rehab work to make sure it lasts. Using best-in-class tools and fasteners, like BECK air driven tools offered by BECK America, will ensure your rehab will be a dream home for years to come.