Buying a property that needs some TLC, whether you ultimately plan to live in the home or resell it, can be a smart investment and a rewarding project. With the ups and downs in the market over the past several years, I've seen lots of examples of ugly-duckling properties that have been turned into dream homes with happy endings for buyers who might not otherwise have been able to afford a home with similar upgrades.

But rehabbing a home takes money, work and perseverance. To make a good business decision about whether to take the leap, you need to ask yourself some questions:

What's my tolerance for the project? No matter who you hire to do the rehab or how many projects they've completed, you're likely to run into unexpected things that cause delays. Within reason, your best approach to simply expect the delays and roll with them. If changes to the project sequence, timeline or budget are going to cause you undue stress, this might not be the right investment.

How much can I spend? Remember, if you're buying a fixer-upper, you've got to come up with the money to buy the home as well as the money to make the needed renovations. If you're squirrelling away every extra penny for your down payment, you're not likely to have a lot left for repairs. Cost overruns on these projects are common, so leave yourself some breathing room when you're deciding how much cash you need. Add 10 percent to 20 percent to any work estimates to ensure you're prepared for surprises.

Is the home in a historic district? This comes up from time to time around the Roanoke Valley, most commonly in Old Southwest. The historic district designation matters because some of your proposed renovations will need to be evaluated by the Architectural Review Board (or the equivalent body in your locality) to make sure they're in compliance with applicable standards. That review will add some time to the process. Also, it's possible that you'll be required to use certain materials, so find that out up front to avoid wasting time and money on redos.

Are your expectations realistic? You can't wait to redo a house because you've watched all those home makeover shows on TV, right? But in real life, rehabbing a home doesn't happen in a hour. It's going to be a long process, and there might be times when you feel like you're at a standstill. Your final product could well be every bit as dramatic as the big TV reveal, but only with good planning and preparation.

Is the house worth the rehab? This is the bottom line. It seems obvious, but especially if your budget is tight, it's important to have as thorough an understanding as possible about the true condition of the house and the money it will take to make it livable. Sure, you're expecting to make cosmetic upgrades, but are you prepared to rewire the whole house or gut the plumbing? And there are some issues you probably want to stay away from entirely. If a house has major problems with the foundation or an environmental issue like a leaking oil tank, it might be time to walk away. At the end of the day, you don't want to get upside down in a rehab project -- when you're investing more into the house than it's ultimately going to be worth.

Yes, taking on a fixer-upper comes with some risk, but I can help you evaluate a home and decide if it's the right next step for you. Call anytime at (540) 793-0442 or email me atrpayne@mkbrealtors.com. Take a look at my listings here and like my page on Facebook.