4 Ways To Find More Investment Homes In A Competitive Market
Those of us competing for real estate deals realize it is currently a seller’s market. With property inventory levels dipping below a 4 month supply during the course of this year, investors have been in a frenzy competing for properties in certain markets.
Investors are traditionally a competitive bunch by nature. The ability to outmaneuver competitors while picking up profit bearing properties is a key trait savvy investors possess.
Simply by introducing flexibility to investment models, more opportunities can be identified even in a competitive market.
Here a 4 ways to identify more real estate investment opportunities right now.
1. Increase Quantity Of Projects
Many investors are paralyzed by trying to find deals with huge profit margins. Instead of clawing with other investors to find a property that will make a huge profit, complete several quick flips for smaller profit margins. It may be challenging to find a flip that will net $30,000, but it may be easy to find 3 properties needing minor cosmetics that will net $15,000 each in the same time frame. That would mean an investor would make $45,000 from 3 projects, in the same time frame it would take them to find and flip one house for $30,000!
2. Take A 20 Minute Drive
It is amazing how many opportunities await just outside city limits. Sometimes a quick twenty minute drive outside of the congested city will lead to unearthing amazing real estate investment opportunities, with less competition. It is very challenging to find flips for under $120,000 in Orlando. However, just outside of Orlando, Deltona and Poinciana are hot markets for flips under $120,000. Do not neglect towns on the outskirts of major cities. Savvy investors realize when the market is over-saturated in a particular area and look elsewhere.
3. Add A Shower
3 bedroom 2 bath homes seem to sell very fast here in Orlando. However as an investor there is no need to wait for one to come your way. If the market does not have any available, simply add a shower to a spacious 3 bedroom 1.5 bath property.
4. Use Leverage
Savvy investors know leverage is a powerful tool when used appropriately. There may be too few investment opportunities under $150,000, but plenty may be waiting at $250,000. It may be favorable to consider getting a loan in order to purchase homes in a higher, less competitive, and more profitable price point.
Comments (5)
Hello Don,
Yes I am actually very familiar with Deltona. I have a few clients building portfolios in the area, and I currently have a property in the area that I am in the process of renovating myself. The properties can bring in anywhere from $1,000 to $1,200 in rent on the higher end for 3/2's. It depends on the condition of the property, marketing, and demand at the time. However, I'd say that $1,050 to $1,100 are safe numbers. $1,200 is more of a best case scenario.
I'll shoot you a a message, to get more specifics on the deal your are looking at and give you a 2nd opinion. However, I do think you can get yourself a better deal than $109k. Right now I'm working with a client that is living outside of the US and we are looking at properties, that will be rent ready for under $100k.
Deltona is an awesome area with plenty of upside. Most of the homes were built after the 1980's, are your standard cookie cutter 3 bedroom 2 bath homes with garages and you can find them for under $100k. Right now it is one of my favorite areas to find flips under $100k near Orlando, but also a great place to find rental properties with rapid appreciation.
Deltona is still developing, and as those improvements continue I've been watching the property values and rent returns rise. Orlando just built the Sunrail sometime last year, which is a train/rail system that runs through the heart of Orlando and some of the surrounding areas. Phase two will connect Deltona (North East of Orlando) to Orlando , as well as Poinciana (South East of Orlando) to Orlando area sometime in 2016. Coincidentally, the explosive growth in property values seem to be similar in Poinciana, as they are in Deltona.
Hope this helps, I'll follow up with a message to see if I can do more to assist.
Jeff Joachim, over 8 years ago
Jeff Joachim, over 8 years ago
Hi Jeff, I found your post because I'm researching Deltona. A turn-key provider is listing several properties there. All are about $109k, 3/2, and they say the rent will be $1200. That gives a great cash flow, but when I look at other rental indicators on-line it looks like they will only bring in about $1050. Are you familiar with that area? I'm from California, so any local insight would be great. Thanks, Don - looks like only guys named Don comment on your posts ;)
Don Jackson, over 8 years ago
Jeff, I appreciate your input. I agree to thinking "out of the box" is an advantage. Adding value to property will always increase the visibility. Looking on the outskirts of the city has potential. I like the idea of the quantity of projects versus the quality. You have helped me. Thanks and have a Great Day. Don
Don Alberts, over 8 years ago
Thanks @Don Alberts for reading! I'm fairly new to blogging and it's awesome to receive positive feedback. I have had the chance to work with everything from first time investors to big hedge fund buyers, and my goal is to share what I've learned from their successes and failures. Hopefully the content I put out is helpful to others in the future. Happy investing!
Jeff Joachim, over 8 years ago