A good roof that hasn't leaked is important, as is a foundation that isn't defective (is it on a slab?). It would be good if your HVAC system isn't on its last legs, as it could suck up your initial remodeling budget. Otherwise, almost everything else is replaceable to some degree. Are the neighboring houses well kept up?

We currently live in a fixer upper and love it! It can be so rewarding (but its also SO much work and costs so much more than we thought!). My dealbreaker was any structural issues. I wanted a solid house that just needed to be made pretty. It also had to be in a nice neighborhood. Your house could be really lovely, but you can’t control what your neighbors do. Good luck!

Can you afford to stay where you are while remodeling the new house? Is a live-in remodeling possible and can you handle it?

Oh, and termites. I live where they don't exist so I forget that.

Things that are deal-breakers for me are serious problems that can probably never be properly fixed. Examples are serious structural/foundation issues, chronic flooding/water problems, being too near undesirable 'features' (like transmitter power lines, railroad tracks, etc), and being under control of something like an HOA. :) Everything else just takes time and money.

"would be great for an investor or handyman," neither of which we really are, although we're both capable of doing basics.

There you go. The listing is honest. This is way above painting and new carpet.

It would be a frustrating money pit for you.

"It says "would be great for an investor or handyman,""

Or not so honest as they usually under shoot these items. Needing an "investor or handyman" to me would tell me that it dam near is a gut rehab.

If you really like it, money spent on a thorough independent inspection to identify issues is not wasted. Then find out cost and effort to address. If you can deal with the logistics of addressing them, make an appropriate offer on the house based on the information, even if appropriate is very low and your realtor says they will never accept. It is hard to know the circumstances of the seller and what they are thinking. We once made an offer on a property with issues our realtor said was so embarrassing she couldn’t take it to the seller. We bought it for less than $10,000 over our offer. You just never know.

Prepare yourself...the listing is warning you :)

If you decide to put in a contract and it's accepted, definitely get a home inspection. If major issues are found, you can walk away. Minor cosmetic updates shouldn't scare you, but one or more major issues should. Keep us updated.

Where are you getting the funds for repairs?

As others have mentioned when the ads are directed toward investors or states its a 'handyman special' - that usually means the buyer needs to be a cash buyer because the property isn't financeable with your typical end loan. The exception is if the buyer is able to get a rehab loan. Explore this option with your LO asap today. The money may stop your purchase before you even get in contract.

If you do get as far as a contract, please hire your own independent inspector, not one the realtor recommends.

Can you afford to put in a cash infusion equal to the purchase price? Because the listing is basically saying it just needs everything. That’s a tall order for anyone, but it’s usually only achievable by an investor with cash for those repairs.

If you aren’t handy? Absolutely forget it.

I remember my first house, which, fortunately, was in really good shape because at the time my skills and knowledge were rather basic. During the first ten years I made a lot of changes and had to do some repairs, and I got pretty good at plumbing, electrical, insulation, weatherproofing, framing/carpentry, and sheet-rocking. All I can say is that I had the time to learn those skills and I didn't have to learn them all simultaneously. Based on your description of the state of the house and your skill level, you would have to take on a large set of tasks simultaneously and at the same time go from zero to sixty in terms of honing your skill set. This could be a nightmare project, and I urge caution in your decision to buy.

Check the local authority's records to see if the changes have been permitted, especially the garage conversion. Some areas are much stricter than others about unpermitted work and you don't want to have to rip the place apart except for your changes.

Look carefully as many handyman specials are priced too high for the work needed. For example, replacing a small bathroom vanity can be a cheap and easy project if all goes well. But, new vanities can be taller so you may be needing to move the electrical outlet up. Or the footprint is different so now you need to deal with the floor. The cabinet might be $600 but the project cost might be $2,000. Imaginary numbers but you get the idea.

Another consideration for new homeowners is the cost of owning and working on a house. You may need a lawnmower, weed whacker, snow blower or other power tools. Then add the gardening tools, extension cords, and garage storage shelving. Now, then there are hand tools to buy, then a cordless tool set, and power tools, safety gear, bits, blades, brushes, supplies etc. All items you will likely eventually accumulate anyway, but it is a big bite at the same time you are paying for closing costs, furniture, window treatments and rugs.

Good advice from everyone and take seriously the “handyman and investor” flag in the listing. One item to add to the “walk away” list is a home owned by a heavy smoker. I have not owned one, but there’s tons of threads on Houzz and elsewhere documenting how difficult it is to completely remove the smell.

Sounds like it might have been a rental, and I would be concerned about what the renters were doing in/with the property if so. The damages you describe are not just neglect, IMO.

I really appreciate all of your replies! I think we're leaning towards moving on from the house, even though we love the view and yard, but it does sound like it's probably going to be too much for us to undertake. Since the pandemic, I work almost exclusively from home and a lot on Zoom, which would complicate the situation of having major renovations going on in the background. I'd actually thought of trying to keep the place we're currently in for a few months while we worked on the renovation since they're so close, but I think between rent, mortgage, and renovation it would just be too much for us to afford.

And that was actually our thought as well regarding it being a rental. We started thinking that because of the partition wall thing, like it was used to separate the tenants, along with the door possibly being kicked in. I had never even thought of some of the advice like watching out for heavy smokers or the unpermitted conversions. Although we're probably walking away from this particular one, I'm going to be bringing the advice received from this post into our continued search. I can't tell you how much I appreciate it!

One other thought: If the house you have been considering needs as much repair and renovation as it sounds, I suspect that you would not be able to do the bulk of the work in "a few months," especially with the other things on your plate, and with all the complications that the pandemic brings into the mix.

But good luck to you, whatever you do.

Agreed. I knew it was a situation where I knew I wouldn't be going into a live-in ready home, but was initially hoping the repairs would be minor enough that we could just power through and get the major repairs done as quickly as possible. Now though, I'm definitely having second thoughts just given the amount of repairs I see it needs only from the outside view so far, without even having the inspection or seeing the inside.

If it just said "needs a handyman", OK, but since it mentions it needs an investor, that is to me realtorspeak for it's a teardown. A homeowner rarely gets back in the next sale what they put into a home. If someone buys a property to live in with their family, they will want to spend money to make it livable but not as an investment. An investor on the other hand, wants to see a hefty return quickly. I would bet if you could see the inside of this house, it's more a tear-down than a house that you could just spruce up over time.

As a first time buyer, I would suggest that you look for a property in good condition. While a fixer upper would not phase me in the least, it's taken 40 years to get to the point where I know when it's time to walk away and when it's just dirt and light neglect.

Even new construction has issues and costs a lot more money than you might imagine to complete the house. I advise getting a good agent and start working with them to find you a combination of soundness and small to-do list.

Start to educate yourself and become an educated buyer. Hanging out on these threads and learning from other's mistakes will help you in this education process.

Determine your financial status. Identify the area under consideration. Be flexible and willing to expand this area. Interview and engage an agent to help you. Determine the type and condition of suitable properties. Start looking. Find suitable property. Make an educated offer. Inspect. Get financing. Close. Move in. Start paying for it.