There's a HUD house for sale in my area for 22k. How do I determined if it's a good deal or not? I'm still learning..
Many hud homes are good deals and others can be a disaster. First you need to ask yourself what you want to do with the property (hold, flip, etc), then if you want to hold are you in it for cashflow or appreciation? Once you know the answer to those questions learn your market ( what are going rents and vacancy rates, what is the resale market like, etc.) Compare this home to other comps in the area and don't just jump in because 22k sounds cheap. Many hud homes especially in places like Michigan have sat vacant for long periods and were not properly winterized so you run a good chance of issues like broken pipes. Ask your agent for a property report. Do your best to estimate what all the costs to get it ready to rent or sell then decide how much you can pay.
I would want to hold for cash flow, How would I find out what will it rent for and vacancy rate?
go to zillow and type the address in. Look at the subdivision and maybe surrounding subs. Using zillow you can see what's for rent as well as sold homes in the immediate area (narrow down to recent, maybe last 6 months). Rentometer.com has good rental info but can be old info if turnover is low.
I would start by contacting a Realtor at a local real estate office. They will be able to create a CMA (Comparative Market Analysis) for the home in which you are interested. The CMA will give you 75% of the information needed to determine whether your purchase will be a good deal or not.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!