Description
A Handyman’s Special in the realm of real estate, often advertised in classified ads, typically denotes a property that requires significant repair or renovation work. Due to its current condition, the property is usually listed at a lower-than-market price. This term is particularly of interest to buyers who are skilled in home improvements and are looking to invest time and effort to increase the property’s value either for resale or for personal use.
Examples
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Example 1:
- Description: The Johnsons purchased a handyman’s special needing new roofing and plumbing repairs. They bought it for $80,000 and invested $20,000 in materials and their labor over several months. After the upgrades, the property was appraised at $120,000.
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Example 2:
- Description: Sarah found a handyman’s special listed at $100,000. It needed a new kitchen and bathroom upgrades. After buying it and spending $25,000 on renovations, she was able to sell it for $140,000, making a tidy profit of $15,000.
Frequently Asked Questions
What is a Handyman’s Special?
A Handyman’s Special is a property that requires extensive repairs and renovations. It is typically sold at a lower price to attract buyers who have the skills or resources to make the necessary improvements.
Why are Handyman’s Specials priced low?
These properties are priced low due to their current poor condition. The seller recognizes that buyers will need to invest significant time and money to make the property livable or sellable.
What kind of repairs do Handyman’s Specials usually need?
Repairs can range from cosmetic fixes like painting and flooring to more serious structural issues like roofing, plumbing, and electrical systems.
Are Handyman’s Specials a good investment?
They can be a good investment if the buyer can perform repairs themselves or manage the renovation cost effectively. The profit lies in buying low, investing in upgrades, and selling at a higher price.
Can I finance a Handyman’s Special?
Financing a Handyman’s Special can be challenging through traditional mortgages due to the property’s poor condition. However, specialized loans like the FHA 203(k) loan may be available for such properties.
Related Terms with Definitions
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Fixer-Upper: Similar to a Handyman’s Special, a fixer-upper is a property sold at a lower price that requires significant repairs and renovations.
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Sweat Equity: The value added to a property by the owner through their own labor efforts, commonly associated with handyman specials.
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Real Estate Investment: The purchase of properties as an investment to rent them out or resell them for a profit.
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Renovation Loans: Specialized loans designed to cover the cost of purchasing and repairing properties in need of significant upgrades.
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As-Is Sale: A property sold in its current condition without any promises of repairs or warranties from the seller.
Online Resources
- Investopedia - Real Estate Investment
- Zillow - Buying a Fixer Upper
- U.S. Department of Housing and Urban Development - FHA 203(k) Loan
- This Old House - Home Improvement Tips
- HGTV - Flipping Houses Guide
References
- Smith, D. (2020). The Real Estate Investor’s Handbook. New York: Real Estate Books.
- Johnson, M. (2019). Renovate & Profit: How to Turn a Fixer-Upper into Your Dream Home. Chicago: DIY Publishing.
- Brown, E. (2021). Understanding Real Estate Investments. San Francisco: Tech Publishing.
Suggested Books for Further Studies
- The Book on Flipping Houses: How to Buy, Rehab, and Resell Residential Properties by J. Scott
- Real Estate Investing for Beginners by Michael Ezeanaka
- The BiggerPockets Real Estate Investment Book Vol 1: How to Achieve Wealth Through Proven Real Estate Strategies by Brandon Turner
- Home Improvement 1-2-3: Expert Advice from the Home Depot by Home Depot
- The Real Estate Wholesaling Bible: The Fastest, Easiest Way to Get Started in Real Estate Investing by Than Merrill
