what are some downfalls to buying a forclosed home or multi family buiding?
i want to invest on realestate, preferebly a multifamily buiding to rent out. But when i look at the prices online they look to good to be true, there must be a catch somewhere they arent showing. If you know anything about investing on realestate can you please give me advice on this issue.
From 1996 to 2001 I bought 14 homes all foreclosures and/or distressed properties. I sold all but three of them. I now own 2-2 Family units and 1-single family unit. The one two family was a VA foreclosure, the other two family was from a man who wanted out of the rental business. I have now owned all of them between 12-15 years. Great Tax advantages, some headaches, but you must be ready to put money into them. 15 years Rental property owner.
Check out www. how-to-buy-sell-foreclosures.com/landlord.html for more info
December 4th, 2011 at 1:50 am
look into any liens that go with the home. Back taxes, utilities, etc. Do you have any experience as a landlord? The first time can be a bit harrowing when you go to collect the rent and instead of money they hand you a story. Try and find out why the place went belly-up in the 1st place. It may give you a clue what to expect.
References :
successful landlord
December 4th, 2011 at 2:01 am
many foreclosures have more owed on them than they are worth, also, may need lots of repairs. many multifamily rentals tend to be in rundown areas where rents tend to be distressed. i have found success looking to buy around local colleges(there is a dorm shortage) . older homes can sometimes be easily converted into duplexes. just remember, taxes, insurance, and repairs can be a burden when there are vacancies.
References :
December 4th, 2011 at 2:37 am
One pitfall is you won’t be able to rent it out, at least profitably to desirable tenants. You may need to make significant repairs and upgrades to make it habitable.
You at least need to investigate the rental market to see if it is rentable, and for how much.
References :
December 4th, 2011 at 2:49 am
From 1996 to 2001 I bought 14 homes all foreclosures and/or distressed properties. I sold all but three of them. I now own 2-2 Family units and 1-single family unit. The one two family was a VA foreclosure, the other two family was from a man who wanted out of the rental business. I have now owned all of them between 12-15 years. Great Tax advantages, some headaches, but you must be ready to put money into them. 15 years Rental property owner.
Check out www. how-to-buy-sell-foreclosures.com/landlord.html for more info
References :
http://www.how-to-buy-sell-foreclosures.com/landlord.html