Hello All. My name is Ken, I am from NY and i am new to investing. My main goal to be brief is to get into rentals. I like the idea for retirement reason. I do however want to flip a few houses. Flipping id not a future for me and my plan, but I would like to have a few under my belt for the experience and of course the money!!!!
My question is, when looking at a forclosed property, (needing some TLC) what are some important things to look for as far as the property is concerned? How can you tell if the property is worth it (condition wise) for the amount of money?
I think that that is what this business is all about. Knowing a good opportunity when you see it. For me, I like to look at some comparable sales in the area to get an idea of what the house in question could sell for if in similar condition. That will allow you to see how much of a margin you have between the purchase price and what it could sell for.
Then you have to figure what the cost of renovations will be. Now you can use the comparables to see what people will pay for a house in a given condition. That should allow you to determine what needs to be done and you can then get estimates for those items. I believe that kitchens and bathrooms will sell a home and are also the most expensive things to redo in a home, so you will most likely find that the homes with higher sale prices and low Days on Market will have those items updated, or at least partially updated.
You can always make an offer contingent on having a home inspection. It will weaken your offer, but will save you if they find major problems that a newcomer might not notice.
Hopefully this helps!
I appreciate the advice. That’s great. So to sum up. Find selling price on homes in the area, determine renovation cost with cost of property and determine margin... Ehat other cost should I expect to have and what may they be??
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing