Can I still make money on fixer upper homes if I am not a handyman?

Even if you're not a handyman, it's still possible to make great profits when you buy a fixer upper home. You don't have to be a master carpenter to take advantage of the values offered on fixer uppers; you just need to be cost efficient.

Buying a fixer upper home can net you savings of often 50 percent or more off the property's market value once you get it up to selling condition. A successful fixer upper investment is much more about careful planning of costs and values than being an expert handyman.

The first things to consider when buying a fixer upper home are how much you stand to pay for the property and your estimate of how much it’ll be worth once you put in the necessary work. Now, if you have some experience as a carpenter or handyman and can do some of the work on the home yourself, that certainly helps.

Saving money on labor will figure in greatly to your bottom line. However, even if you plan to do none of the work yourself and hire contractors instead, you can still profit on fixer upper homes. It just takes some extra planning.

Before you buy a fixer upper, have a professional real estate appraiser give you an estimate of the home's value if you were to fix it up to market condition. Then, get a contractor to give you an estimate on the cost of fixing up the property. Now, subtract the cost of the repairs from the potential market value of the property, and you have your “break even” price.

The “break even” price is the maximum price at which you can buy the home and break even. If you pay more than this, you'll lose money on the purchase and eventual sale of the property. Any amount less that you pay is profit on your investment!

The goal is to minimize the cost of repairs and make the gap between your break even price and the amount you pay for the home as large as possible. Most buyers earn 10 to 20 percent, and even up to 30 percent and more, on fixer uppers without doing any of the work themselves!

Just make sure you account for all costs, and buying fixer upper properties can be a great opportunity, even if you're not a handyman.