I am fairly new on this site. I am looking for a home between 30,000 to 40,000. I am wondering how do I target homes
25% under the market value, even though I need to do some minor rehab before I resal. I live in Georgia. Thanks!
Hey Nancy, have you checked with a realtor for foreclosed homes? Home auction websites are a good place to find deals if you have cash, or homepath homes if you would rather finance a home.
If you try and find one on the MLS you'll probably get into a bidding war and end up paying more than 30-40k right now. Look on CL or go to the court house auctions. Another option is hand out your card to the sheriffs department. There're the ones who do evictions and might run into a landlord who wants to dump a house that isn't worth his time anymore. You can still find them in that price range but its getting harder. They will require more than "minor" fix up. Might want to even wait till the 4th quarter or very beginning of the 1st quarter if your not finding anything right now that doesn't have multiple bids.
I assume you're looking in metro Atlanta? To most folks, that's the only city in Georgia that comes to mind.
I live and invest (buy and hold) in warner robins although I grew up in Atlanta. Smallish military town. A lot smaller than atl, that's for sure. For me it has been a great town to begin. The inventory is limited but the competition isn't too fierce. You can get houses that cheap here but in C/D neighborhoods. It sounds like your interested in flipping so it may be a challenge for you if you're remote and just starting out.
@Watson Smith great idea about the local Sheriffs, building relationships first is the key.
@Nancy Nelson how is the current situation in Canton. Are there neighborhoods that could be worth your while at the right price? It gets tricky if you want to rehab far from home, unless you already have the entire team in place (reliable contractor, attorney, accountant, knowledgeable agent). Like Watson said, you are looking at a large rehab project in that price range.
You can definitely still find properties at that price in Georgia, but as an agent my follow up question would be how much would you like to be all into the project for? How much rehab are you looking to take on? Have you considered Hard money?
Investing in flips in that price range in Atlanta could be very difficult. 1 over look in your rehab cost inspection can cost you big as far as margins. Another option is to buy-rehab-sell turnkey, it is very popular right now in Atlanta in that price range, yes your margins might be tighter, but if you lock up a buyer up front you cut out alot of risk that comes along with flipping a lower priced property.
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