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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We are looking at a pretty intense fixer-upper.  I know in my head it's not a smart decision -- we have a 17 month old kid, another one on the way, full-time jobs, and no real knowledge of contracting/home fixing/etc.  I keep getting blinded by the dazzle of getting to choose my own finishes, reconfiguring the layout, and generally making some money (long-term) off of this house.

So which is right, my head or my greedy little heart?[/quote]

Haven't read the other responses, but if you have the money to fix it up how you like it, the DO IT!  I bought my house in 2003.  It was a foreclosure.  I didn't even own a hammer and was a single woman at the time.  I LOVE my house and buying it was the best financial move I've ever made.  It is now worth 3 times what I paid for it plus what I put in.  And it's exactly how I like it.  I lived here through all the renovations.  I also did what needed to be done straight away and have done the rest over time.  I learned very quickly about the basics, even though I didn't do much of it myself it was still a steep learning curve to understand what was possible and what wasn't and what would be expensive and what wouldn't, what needed to be done right away and what could wait.

Also, try and look at the work that needs to be done to see what you can live with now and what would be quick inexpensive fixes.  For example, holes in the wall and peeling wall paper look terrible, but are quick and not expensive fixes.  If the roof is damaged and leaking badly it needs to be fixed right away so that it doesn't cost more in the long run.  Likewise, expect that you will learn more as the process goes on - e.g. once work starts you will definitely uncover additional problems, but they are not all necessarily expensive.

How old is the house?  (Mine is 1880s).  What type of issues are you talking about?[/quote]

Yes I'm sure your house tripled in value because you put in new bath tiles and refinished the floors.  Nothing to do with the historically massive housing bubble/boom (you pick, only history will tell if DC really has changed for the better or if just part of a decade long Federal spending splurge coupled with a national housing bubble).

Renovations 99% of the time *never* recoup their cost. Do it because you want to improve the house for yourself.  They do not add value above and beyond *the money you spend*.  And if you _finance_ that money, you are likely spending far more than the 'cost'.

There is definitely value to be said to renovating a house to make it fit your needs, but investment should *never* be in your vocabulary unless it is an investment property that you may be able to charge high market rent because of renovations (and even this takes careful calculation and usually necessitates the cheapest finishings possible)

As for doing it with a toddler and baby on the way, I see much wailing and gnashing of teeth... can you wait until kids are older?[/quote]

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