PSA: Picking a fixer-upper vs move-in ready saved me $15k in hidden costs

When I was house hunting in Phoenix last year, I had to choose between a $200k fixer-upper that needed a new roof and plumbing or a $260k move-in ready place that was smaller. I went with the fixer-upper thinking I'd save money. But after the inspection found termite damage and knob and tube wiring, I ended up spending about $40k total on repairs. The move-in ready house would have been way less stress. Has anyone else underestimated renovation costs on their first home?

3 comments

3 Comments

joseph_green133d ago

Gotta disagree with you here man. A fixer upper is only a good deal if you actually know what you're looking at before you buy. You skipped getting a real contractor to walk the property with you before putting in an offer. I've flipped 3 houses in Phoenix and trust me, a $200k fixer with a bad roof and old plumbing is still way cheaper than paying $260k for a smaller place. You just need to add another $30-40k to your budget upfront and plan for it. The termite damage and knob and tube stuff are pretty standard for older Phoenix homes, not really hidden costs if you do your homework. Sounds like you just underestimated the full cost of renovation by a lot lol.

brian_hart3d ago

I had a similar wake-up call on my first flip here in Denver. I thought I'd done enough research but missed the knob and tube wiring until after closing, which ate up a huge chunk of my budget. Your point about adding that extra $30-40k upfront makes total sense, that's the kind of planning I wish I'd done from the start.

the_ben3d ago

Read something the other day about how knob and tube wiring was actually considered high tech back in the day because it let the wires cool better than the old cloth covered stuff. But yeah, it's a nightmare for flips now since most insurance companies won't touch it. The whole thing with Phoenix is that those 1950s homes look solid from the street but the guts are usually shot.