Foreclosure, to buy or not to buy?
Any advice given is very much appreciated..
I have about 100k to invest, currently I have 1 investment property one block from a College and it is currently rented to college students. It is a very good income producer, I have checklists in place to minimize vacancy albeit due to the high turnover rate of the college rental market. I have dealt with student rentals for 8 years now so I do have experience in that niche market.
A foreclosure came available one block from the newly expanded portion of campus. I do not have any experience in managing a remodeling project to hire contractors and assess bids etc. The potential monthly rent after remodeled is $2,500 up to $2,800 for the property, depending on if we decided use nicer features in the units.
It is currently on the market for $119,000, though after seeing the property it does need a substantial about of remodeling not to mention 8 potential tree removal that are hovering over the house and may pose a threat to it in the event of a bad storm.
The realtor mentioned that there has been 3 other offers on the property.. not sure if this is a selling tactic to get me to place an offer.
My next actionable goal is to call 3 local contractors and gather estimates from each of them. I would like to have an idea of how much it is going to cost to turn the place around/remodel prior to placing an offer.
I am thinking with the amount of money I have it wold be best go conventional on another investment property near the college but this is such a great opportunity because the house is less than 1 block from campus, while the other investment properties I have seen are further away and therefore may be less attractive to college students.
Being a newer investor with little experience in hiring contractors, I am open to hiring or potentially even partnering on this deal with someone who has experience in project management and or remodeling.
Is it wise to purchase a foreclosure so early on in my real estate career?