We decided to buy a house for an investment! Sure, prices may inch lower, but the buys out there appeared too good for us to pass up. We have been shopping homes for our children since January in the $300K to $400K range. There are a lot to choose from here in East County, most of which are short sales and a few which are bank owned (i.e., already foreclosed). What we found was that every house - without fail, that the four of us liked and decided to put in an offer to purchase, received multiple offers! Hmmm.... We thought no one was buying real estate? WRONG! The under $400K market is heating up, and the under $350K market is HOT. Now, not every home under $400K is getting snatched up. Buyers are definitely shopping location. If the home is in a good location and is priced below comparables, it is selling.
The catch, of course, is that these properties need help. We were looking for what we called a "screamin' deal." The screamin' deals are, well, messy! The homes need TLC. Paint, flooring and landscape are necessary to appeal to this market's pickier buyer or renter, depending on the investor's plan. We aren't positive what we will do with our investment yet. If we can make a profit, we will resell it after we get it spiffed up. If prices have dropped lower at that time, we know we can rent it and cover our costs because it is in a great neighborhood.
We are excited about this new venture for us! We have been wanting to invest in real estate for many years but prices have kept us from taking the plunge, other than owning our own home. We believe that now is the time. We'll keep you posted on the results.
No comments:
Post a Comment