Looking at properties for a first investment! Some of the properties are foreclosures or preforeclosure. What would be the best thing to watch for with these properties? Obviously you can get into the properties for cheap but is there underlying costs or things I should know moving forward?
Are foreclosure properties a good option in the Indianapolis area?
@Chris Madden COVID is driving up foreclosures and you can position the opportunity as a win/win to the owner. You're keeping them from letting the bank take the property avoiding them a foreclosure on their record with the potential they won't be approved to rent, while you're getting the property for about 70% of value. Hidden costs are anywhere in real estate investing...specifically with foreclosures, just write in a walkthrough contingency. If you're out of state, work with a trusted PM and have them walk it for you before you close. You can put together a rehab plan with the right eyes on the property and know what you're getting into before you own it. Getting some closer eyes on specific properties will help you learn more about what to look for and how much you can ballpark parts of the rehab. Definitely opportunity out there once you know what you're looking for. Best of luck! Let me know if you'd like to talk more about the Indy market.