Hi I have been looking at properties and found a great HUD that I am interested in. A two unit townhouse style duplex for a good price for the area. In good condition from what I can tell. Property is sold as is. I have some general questions.
How do I really look into the property? Is there a way to see what the place used to rent for? What kind of repairs were done to it? How do i tell if this place will cash flow?
How do i find out about the deed?
Is there a place on biggerpockets I can go to for some guidance on these types of properties?
When you say HUD, I assume you're meaning that the property is a HUD owned property. There are a few things you should know. HUD properties are only available to local residents to owner occupy for the first two weeks of the listing. After that, it's opened up to investors and professionals if an owner occupant doesn't buy it.
The research can be done exactly the same way as any other property. The title company can do a full search for you. You can also research the deed history at the county recorder office. This is online in most counties in the country.
Research on the local rental market can done with tools like rentometer.com. The past history of the property is not really an indication of what you will rent it for. You're probably going to improve it and charge more rent. But the comparable rents in the local market are important.
The history of repairs isn't all that relevant in my experience. I prefer to look at the property and compare it's current condition against the checklists that we use for our finished property standards.
The question of analyzing the deal, there are a lot of variables. There are many good education tools available out there on how to analyze a deal. I suggest you look for a good book on the topic. There are many out there.
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