handyman special

I've read that a person can make a lot of money buying handyman specials and fixing them up to sell at a big profit. Is it really this easy?

Buying low, renovating, and selling higher can be done, but I don't think it's a very easy way to make money. You must first have the cash or qualify for a mortgage to buy the house. You must also have some way to pay for the renovations before you get any money from a buyer. Finally, even if the house looks great, it may not sell now, or for several months, or ever. Buyers of “handyman specials" should have a “plan B" to carry the renovated house until it is sold. Otherwise, the “easy" profit, and more, could be eaten up by the carrying costs until resale.

Joan A. Koffman, Esq., Real Estate Attorney, Koffman & Dreyer, Newton, MA