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I want a fixer-upper - what are deal breaker, don't buy redflags for fixer uppers?

I'm not super handy or knowledgeable about this stuff but I think I can handle a fixer-upper that maybe just needs cosmetic and then I pay someone to do one or two of the bigger projects. I’m looking at cheaper houses that need work. I don't mind painting, but what are the issues that are too expensive to fix? Foundation? Mold? Knob and tube wiring? What should make me instantly cancel the contract?
Asked By Kiele S | Chicago, IL | 36 views | Affordable Housing | Updated 6 days ago
Answers (8)
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Semi-Pro
36 Answers
Phong Tran

Real Broker

(4)

You’re on the right track. Cosmetic fixes like paint, flooring, and fixtures are totally fine. The real risk is in big, expensive issues that are hard to predict or control.

Generally safe (good fixer-upper stuff):
Paint, flooring, cabinets, light fixtures, minor drywall repairs, landscaping

Proceed with caution (get bids first):
Roof repairs, HVAC replacement, older plumbing, electrical updates

Major red flags (can get very expensive fast):
Foundation problems (cracks, settling), significant mold or water damage, knob and tube wiring, sewer line issues, structural damage

When to seriously consider walking:
If the problem affects safety or structure, if costs are unclear, or if repair estimates blow past your budget and the seller will not negotiate

Simple rule: visible and straightforward = manageable, hidden or structural = high risk
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Rising Star
29 Answers
Becky Groe

Coldwell Banker Realty, Colorado Springs

(82)

This is a great question, and you're thinking about fixer-uppers the right way. The key is knowing the difference between cosmetic fixes (usually manageable) and major system or structural issues (which can become very expensive).

A good rule of thumb I often share with buyers is:

Cosmetic problems = opportunity
Structural or system problems = proceed carefully

Usually manageable fixer-upper projects:

These are the types of things many buyers take on successfully:
• Interior paint
• Flooring replacement
• Cabinet updates
• Appliances
• Landscaping
• Light fixtures
• Minor drywall repair
• Cosmetic bathroom updates

These typically improve value without major risk.

Common deal-breaker or high-risk issues to evaluate carefully:

1. Foundation problems
This is often the biggest concern because repairs can be very expensive. Warning signs include:
• Large foundation cracks
• Sloping floors
• Doors or windows that don’t close properly
• Structural shifting

2. Major water intrusion or mold
Water problems can lead to structural damage and ongoing repairs if the source isn’t fixed.

3. Outdated electrical systems (like knob-and-tube wiring)
Older electrical systems may:
• Require full replacement
• Create insurance challenges
• Be safety concerns

4. Sewer line problems
Many buyers don’t think about this, but sewer repairs can be costly. A sewer scope inspection can help identify this risk.

5. Roof and structural damage
If the roof is near the end of its life or there is structural rot, this can become a large upfront expense.

6. Environmental issues
Things like asbestos, lead paint, or radon aren’t always deal breakers but should be understood before moving forward.

A practical approach many buyers use:

Focus on homes where:
• Structure is solid
• Major systems are functional
• Repairs are mostly cosmetic

And consider walking away if:
• Structural issues are severe
• Multiple major systems need replacement at once
• Repair costs exceed your comfort level

What I usually recommend is getting a very thorough inspection and, if needed, contractor estimates before making repair decisions.

Fixer-uppers can be great opportunities when the big systems are sound — the most successful buyers are usually the ones who focus on improving appearance rather than fixing major structural problems.

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Rising Star
18 Answers
Jordana Jared Proctor

Keller Willams Westfield

(25)

Cosmetic fixes are one thing, but some issues can spiral fast. Big red flags: foundation problems (cracks, settling), major water intrusion or mold, and anything structural. Those get expensive quickly and aren’t DIY-friendly. Old electrical (like knob and tube) and outdated plumbing can also be costly, especially if you have to bring things up to code. Roof and HVAC aren’t dealbreakers, but they add up. If you’re not super experienced, the line is basically this: if it affects safety, structure, or water, pause or walk unless you’ve got solid estimates and budget cushion.
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Rising Star
15 Answers
Maria Wilbur

Signature Premmier Properties

A fixer-upper can be a great opportunity, but the key is knowing the difference between cosmetic upgrades and money-pit problems.
Here’s a simple breakdown:
Generally SAFE fixer-upper projects (good buys/ good bones):
• Paint, flooring, outdated kitchens or bathrooms
• Landscaping and curb appeal
• Light fixtures, appliances, cosmetic updates
• Minor roof or siding repairs
These are predictable and easier to budget.
Major RED FLAGS 🚩 to think twice about:
• Foundation issues (cracks, shifting, uneven floors) → very expensive and structural
• Water intrusion or flooding → can lead to long-term damage and mold
• Mold throughout the home → costly remediation and potential health concerns
• Knob and tube or outdated electrical → often needs full replacement
• Old plumbing (galvanized or failing sewer lines) → hidden and expensive
• Roof at end of life + other major issues → costs add up quickly
• Septic or cesspool failure (very common on Long Island) → big-ticket item ( but there are grants available to help with this cost)
Deal breaker mindset:
If the home has multiple major systems failing at once (foundation + roof + electric), that’s when buyers should seriously reconsider.
Best way to protect yourself:
• Always do a full inspection (and add sewer scope if possible)
• Get contractor estimates before moving forward when you can
• Keep a renovation buffer. Things almost always cost more than expected
• Work with an agent who can spot risk early and guide you
A fixer-upper should feel like a project… not a gamble
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Rising Star
12 Answers
Emily Matthews

RE/MAX Universal Realty

(1)

If you're not handy, why look for one? Unless it just involves paint & flooring. Then it should be OK
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Novice
9 Answers
Stacy Corrigan

Peace of Mind Prop Mgmt & Real Estate, Inc.

(19)

As a seasoned investor and flipper you certainly would like to find a reliable contractor or inspector to come with you to view the homes you want to offer on. I would find a local investment group or wholesaler and tour some homes with an experienced person who has no financial motivation to earn from you first so you know they are giving you honest feedback. Most would be fine to share their knowledge for no cost, but if you need to pay someone for the time be totally willing to do so, because it will save you thousands in the end. In MA & CT we have some homes that were built with bad concrete and the foundations are crumbling who purchased their aggregate from this one quarry. It's a $100K - $200K problem in many cases. Termites are another big concern that could result in costly repairs that you may not be able to handle. I would definitely hire a home inspector for the knowledge for every house you offer on until you become knowledgeable enough to identify the risks on your own. GOOD LUCK! My Real Estate Associate Young Lee is in your area and an experienced investor himself if you want to look him up he'd be a great beginning resource for you.
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Novice
6 Answers
Tammy Arp

Mountain Vista Realty LLC, DBA Realty ONE Group Vista

(2)

When evaluating a fixer-upper, focus on avoiding major structural, safety, and systemic issues, as these are the most expensive and unpredictable to repair; true deal breakers often include significant foundation problems (cracks, settling, sloping floors), extensive water intrusion or mold, outdated or hazardous systems like knob-and-tube wiring or failing electrical panels, major roof damage, and old or failing HVAC, plumbing, or sewer lines (especially septic issues). Cosmetic items like paint, flooring, fixtures, and even kitchens are relatively manageable, but structural repairs, environmental hazards, and full system replacements can quickly exceed budget and timeline expectations. A good rule of thumb is: if the issue affects the home’s structure, safety, or livability, or requires multiple specialized contractors, it’s worth reconsidering or negotiating heavily before moving forward.
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Novice
2 Answers
Steven Milkovich

Real Brokerage

(99)

It realy comes down to your comfort level and your ROI on the project. It really wise to have a good contractor and home inspector to help guide you through this process as you move towards purchasing or negotiating repair items. Pretty much everything is fixable for the right price and amount of sweat- so you really need to protect your ROI and understand what fixes will even get you an ROI-

But short of a home falling off of a hill or a cliff--there are very few repairs that would scare an experienced home flipper.

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