When you purchase a fixer upper, the first instinct may be to rush in and start to work. But if you take some time to evaluate the overall project and then to make a plan, you may find that there’s some serious money to be saved on any fixer upper.

The first step is to establish the purpose for buying the fixer upper home in the first place. If you’ve purchased the house for your own use, the necessary repairs may be at least slightly different than if you’re buying fixer upper properties with the intention of selling them.

After you know what you’re plans are for the fixer upper, you’re well on your way to creating your plan.

The first items on your plan to fix your fixer upper property should be anything that is doing further damage to the property. A leaky roof can’t be put off. If you have leaky water lines, turn off the water until the repairs can be made. If there is termite damage, an exterminator can’t be put off. But after the immediate repairs are done, you can take a bit of time to figure out what else needs to be done to make your fixer upper ready for its new role.

Many people buy these fixer upper houses (commonly referred to on the real estate market as ugly houses) with the idea of renting them out. If that’s your plan, you probably want to make a list of the needed repairs, dividing them into necessary and cosmetic. Be sure to consider long-term effects of the problems. While the molding at the ceilings may be considered only cosmetic, is your ceiling solid without it? Perhaps the ceiling tiles depend on the molding for support. In that case, the molding becomes a necessary repair on the fixer upper. Trim around doors and windows may keep drafts out – especially important if the landlord is paying the heating and cooling bill as part of the rent on the fixer upper property.

If you’re planning to rent, the impression people get from the fixer upper houses are very important. When potential renters step into the front door, they’ll have that first impression. For that reason, the cosmetics of the living room may be more important than in other parts of the house.

One thing to keep in mind is that cosmetic repairs to your fixer upper may very well garner you a significantly larger rent than a similar fixer upper without those cosmetic repairs. If the fixer upper needs new carpeting, a couple with young children may pass it up because the children will spend time on the floor. You may have lost very reliable renters by saving the few dollars for new carpeting (or at least having a professional clean the old carpet).

By the same token, a new coat of paint or a wallpaper job may be a very simple way to make a fixer upper a desirable home for yourself or for renters.

You may find that a fixer upper is a great investment, either for renting out or for your own home. Especially if you are handy yourself and capable of making some of the repairs yourself, this could be an incredible opportunity.