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

Kiele, useful line to draw: anything that can be replaced is a budget item. Anything that moves is a deal breaker. Fourteen answers listed problems, so let me sort them into those two piles. Walk away: Active structural movement. Not old settlement cracks, which most Chicago houses have. Movement that is ongoing: doors and windows out of square across multiple rooms, stair-step cracking in masonry that is fresh, floors sloping in more than one direction. Get a structural engineer, not a general inspector, if you see this. Engineers cost a few hundred dollars and are the best money in this whole process. Chronic water intrusion. Chicago basements and water are the local version of this. Efflorescence, a sump running constantly, a tide line on the foundation walls, or a musty smell you notice in the first ten seconds. Water is the one problem that keeps costing money after you fix it. Soil and foundation problems, which in older Chicago housing stock often show up as failing foundation walls on 1890s to 1920s two-flats. Budget items with a number attached: Knob and tube wiring. Very common in older Chicago homes. Insurers often will not write a policy on it, which makes it urgent, but a rewire is a knowable number. Galvanized supply lines. They will fail. Replace them. Knowable number. Asbestos in place, in tile or pipe insulation. Usually safest and cheapest left undisturbed and encapsulated. Only becomes expensive when you gut around it. A single old system, roof, furnace, water heater. These are just costs. The Chicago-specific thing to do before you write an offer: pull the permit history at the Department of Buildings for the address. Unpermitted work is extremely common, and the exposure is not theoretical. Retroactive permitting can mean opening up finished walls, and in some cases removing work entirely. An attic or basement conversion done without permits is the classic one, and it also may not count toward legal living space. Two more things nobody said: Look at FHA 203(k) or Fannie Mae HomeStyle. Both finance the purchase and the renovation in one loan, underwritten on the after-improved value. That is the difference between buying a fixer and being able to actually fix it, rather than draining savings and living in a construction site for three years. Budget a 20 percent contingency and mean it. Renovation budgets are rarely broken by the original scope. They are broken by what you find behind the wall, and then by scope creep, because once the kitchen is open the bathroom seems silly not to do. Decide in advance what you will not do. Chicago also uses attorney review on residential contracts, which is genuinely useful on a fixer, because you get a window to renegotiate after inspection. I am Zoltan Peresztegi, a real estate professional serving the South Bay and greater Los Angeles, and I have walked plenty of buyers through this exact calculation. Chicago is not my market, so use a local agent who does renovation deals and an inspector who knows pre-war Chicago construction. Zoltan

A fixer-upper can be a great opportunity, but the key is knowing the difference between cosmetic updates and major structural or system issues. Cosmetic projects like painting, flooring, light fixtures, landscaping, and updating cabinets are generally more predictable and can add value. More serious issues deserve careful evaluation before you move forward. Some of the biggest red flags include: -Significant foundation movement or structural damage. -Extensive water intrusion or mold that indicates ongoing moisture problems. -Major roof damage or leaks. -Outdated electrical systems, such as knob-and-tube wiring, or unsafe electrical panels. -Failing plumbing, sewer line issues, or widespread galvanized piping. -Extensive termite or wood-destroying pest damage. -Environmental hazards, such as asbestos or lead-based paint in older homes, which may require specialized remediation. None of these issues automatically mean you should walk away, but they can be expensive to repair. Before removing your inspection contingency, hire a qualified home inspector and, if needed, specialists such as a structural engineer, roofer, electrician, or plumber to evaluate any concerns. Their reports will help you decide whether to negotiate repairs or credits, or whether it's better to cancel the contract. Juan Picos Realtor | JohnHart Real Estate

Kiele, cosmetic work is one thing, but be careful with foundation movement, major water intrusion, mold, old/unsafe wiring, bad roof, sewer issues, asbestos, or structural damage. Those can get expensive fast. I would never instantly cancel without inspections, but I would make the deal depend on a home inspection, contractor estimates, and your comfort with the repair budget.

Fixer-uppers are great if the problems are predictable. What you want to avoid are the ones where costs can spiral. The big red flags are the ones that are expensive and uncertain. Foundation issues are at the top. Major cracks, shifting, uneven floors. Those can get very expensive and hard to fully fix. Water problems next. Ongoing leaks, poor drainage, signs of mold. Water is what creates bigger issues behind the walls. Old electrical like knob and tube or unsafe panels. Not just cost, but insurance and safety problems. Major plumbing issues. Old sewer lines, frequent backups, or galvanized pipes that need full replacement. Roof or structural damage that’s beyond normal wear. Not just “old,” but failing. Also pay attention to unpermitted work. That can turn into a legal and cost headache later. Cosmetic is fine. Paint, flooring, cabinets, those are predictable. Simple rule. If you can estimate the cost and timeline, it’s workable. If you can’t clearly define the problem or cost, that’s where you walk.

If you are not handy and want to purchase a fixer upper, I hope you have a bunch of good contractors lined up to assist with the tasks. It can get overwhelming and VERY expensive very quickly.

Foundation problems are the biggest red flag. Cracks that run diagonally, doors and windows that stick or no longer close properly, and uneven floors are all signs something is moving. Foundation repairs can run $20,000 to $100,000 and that is before you fix everything that shifted with it. Knob and tube wiring is manageable but expensive. Insurance companies often refuse to cover homes with it, which can kill your financing and resale down the road. A full rewire on an older home runs $15,000 to $40,000 depending on size. Not a dealbreaker if the price reflects it, but go in knowing the real cost. Mold depends entirely on the source. Surface mold from a leaky window is fixable. Mold throughout a crawl space or inside walls from a long term moisture problem is a different animal entirely and often signals bigger structural or drainage issues underneath it. The ones that should make you pause the hardest are foundation movement, major water intrusion with no clear fix, and anything that points to a problem that was hidden or covered up rather than repaired. If a seller painted over water stains or recently finished a basement with no permits in a house that has drainage issues, those are walk away signals for someone who is not an experienced renovator.

You're thinking about this the right way. Cosmetic work is where the value is in a fixer-upper. The problems that should make you walk are the ones hiding behind the walls, under the house, or on the roof. Foundation issues are the biggest red flag. Cracks in the foundation, doors that won't close, uneven floors, and gaps between walls and ceilings all point to structural problems. Foundation repairs can run $10K to $50K or more, and sometimes the fix is temporary because the underlying soil or water issue keeps causing movement. If an inspection reveals significant foundation problems, that's a walk-away unless you're getting the house at a massive discount and have gotten repair quotes in advance. Roof replacement is expensive but predictable. If the roof is at end of life, you're looking at $8K to $20K or more depending on the size and material. You can negotiate for this, but if it needs a full replacement on top of all the other work you're already planning, the numbers might not work. Mold can be minor or catastrophic depending on the extent. Surface mold in a bathroom is a weekend project. Mold behind walls from a long-term leak or flooding is a completely different situation that can require gutting sections of the house, professional remediation, and potentially replacing framing. If you smell musty air or see staining on walls and ceilings, get a mold inspection before you commit. Knob and tube wiring and aluminum wiring are both concerns. Knob and tube is the old cloth-wrapped wiring found in pre-1950s homes. It's not inherently dangerous if undisturbed, but most insurance companies won't write a policy on it, and rewiring a house runs $8K to $20K or more. Aluminum wiring from the 1960s and 70s has similar insurance issues and fire risk. Either one means you're adding a major electrical project to your budget. Plumbing is another one that can blindside you. Older homes with galvanized steel or polybutylene pipes are ticking time bombs. Galvanized pipes corrode from the inside and eventually fail. Polybutylene, the gray plastic pipes common in homes built from the late 70s through the mid 90s, is prone to cracking and many insurers won't cover it. A full replumb runs $5K to $15K. Water damage and drainage problems are deal killers if they're ongoing. A house that floods, has a high water table, or has no proper drainage solution is going to keep costing you money no matter what you fix. Past water damage that's been properly repaired is different from active water intrusion that hasn't been resolved. Unpermitted additions or major unpermitted work can create nightmares with insurance, resale, and the city. If a room was added without permits, you could be forced to bring it up to code or tear it out. The things you should feel comfortable taking on are paint, flooring, fixtures, landscaping, cabinet refacing or replacement, and basic cosmetic updates. Those are the projects that transform a house without breaking the bank. For one or two bigger projects like a kitchen remodel or bathroom gut, get contractor quotes before you close so you know exactly what you're getting into. The inspection is everything on a fixer-upper. Don't skip it, don't use the cheapest inspector, and don't let anyone pressure you into waiving it. If the inspection reveals any of the big-ticket items above and the numbers don't work with those costs factored in, walk away. There will always be another house. Barrett Henry Broker Associate | REALTOR® RE/MAX Collective · The NOW Team Tampa Bay, Florida nowtb.com

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.

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.

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

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.

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

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.

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.

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