Home renovation shows can make buying a fixer-upper look like a fun way to turn an outdated property into a dream home. However, personal finance expert Dave Ramsey has spent enough time renovating old houses to have a very different view.
On a recent episode of “The Ramsey Show,” Bailey from Texas shared how the home she and her husband bought as a cosmetic fixer-upper in 2024 turned into something much bigger. Two years later, she described the house as a “lemon” and was wondering whether it was time to sell.
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Their Cosmetic Fixer-Upper Became a Money Pit
The couple paid $163,000 for the two-bedroom house and still owe about $150,000. Bailey estimated they have already put another $30,000 into repairs, although they haven’t kept a detailed record.
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What began as cosmetic work turned into much bigger problems. Bailey mentioned foundation issues, replacing plumbing and other problems their home inspector missed.
Her husband is handy, so they have been doing the work themselves to keep costs down. That has also stretched the renovation out. Bailey said there is “never any peace at the house” because another project always seems to be underway.
They estimate it could take another year and a half to finish everything. That would turn their renovation into a roughly three-and-a-half-year project.
Ramsey could hear how exhausted Bailey was with the house.
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“You watched too many of those fixer-upper shows on TV and thought it was going to be that easy,” he said.
“I hate those shows because they’re a lie,” Ramsey added. “It’s not what really happens. You’ve lived the reality.”
Ramsey has some experience here. He said he previously renovated historic houses, including properties built around 1898. Opening an old plaster wall could result in an entire room being stripped to the studs as unexpected problems appeared.
He recalled buying one house for $13,000 and spending $78,000 fixing it, only to break even.
“In today’s dollars, just add a zero or two,” he said.
Ramsey’s Exceptions for Living in a Fixer-Upper
Ramsey said he’d never buy a fixer-upper to live in unless two things were true: He was already in the construction business and had owned a home before.
“Never do that as your first home,” he said.
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He was more comfortable with buyers taking on genuinely cosmetic projects. Painting, landscaping, flooring or similar updates can be manageable. Once plumbing, electrical systems or major structural work enter the picture, costs and timelines can grow quickly.
“I’d paint, [do the] bushes and the roof,” he added. “But I’m not touching the plumbing or the electrical.”
For people who want to invest in property without spending weekends opening walls or dealing with contractors, Arrived offers another route.
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For Bailey, Ramsey thought the experience had already run its course. “If you can get your money out of it and get out of there today, get out of there,” he said.
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