Hello, this is my first time posting and being on this website and I must say that I am happy I found it. Lately, I have been dying to invest in a property. I first started looking at commercial properties but then the bank told me due to my lack of experience I will not be accepted for a commercial loan. Now I am looking at 2-4 multi-family unit homes in the Bronx (which is my idea because I believe that the Bronx is on the brink of prosperity based off of what I have been reading; I could be wrong though). I found a couple of properties but am quite hesitant because they are short-sale properties. I have a feeling I am wrong in this way of thinking, but I freak out because I believe that there is something wrong with the neighborhood (the reason why its a short sale is because there are no tenants). Is it worth it to invest in short sale properties?
In advance, thank you to those who offer advice. I am from New York City and have my real estate license but again I'm hesitant in becoming one because of the unsteady pay and things of that nature.
There are definitely things you need to consider when it comes to short sales but on the other hand you can make a lot of money with them as well.
Not all short sales mean that the property is vacant. Sometimes the seller will live in the home until the sale is complete, some will have already moved out. If the seller has moved out, and especially if it has been vacant for some time, then you definitely need to do your due diligence on the property to make sure it hasn't been vandalized, etc. Also, if a property sits vacant for a long time some of the systems, such as plumbing, can have problems that are usually easily remedied but are not always visible.
Just an aside, going with conventional financing you will also not be able to count the projected rents of the units toward your income since you do not have a 2-year landlord history. There may be some local banks who will count those rents but if you go through FHA it will not count.
Best of luck!
as an investor short sales are my thing! I "love" them. 4 of my 5 properties that I personally own have been done through a short sale. I am currently working on 3 more also in the short sale process. So to say I am familiar and in love would be correct. A couple of Mondays I wrote a article for Biggerpockets blog on all the different parts of a short sale process. The good bad and ugly. I would link you to it but I'm on my phone!
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