Nov
03
Real Estate Q???? I Need Help People?
ByThere is a home being foreclosed and I was wondering if it would be a good idea to get it.
As for San Diego CA. I was wondering how long a house sits on the MLS for and if it is a good idea to buy a foreclosed 2.25 acre home with a custom pool, marble fireplace, granite countertops for 250-300K? House is a little neglected (weeds, green pool) and needs a little work but was once appraised at 750K. Is this a good idea or am I diggin myself in another foreclosure hole???
Should I rent the home out for a couple yrs or is the downward spiral of the housing market still heading down?
I am a young investor and need the desperate advice of the experienced expertise.
As a Good Real Estate Agent, I feel confident in giving some advice to you. First, check the area, what’s going on in pricing. Have we seen the end of the downward slide? No one knows. How big is the house in sq. footage? It sounds as though it needs ONLY a bit of TLC. Make sure the roof, foundation, A/C are in good condition. Those are your biggest expenses. Cosmetic stuff can be done in time. Check with local Real estate agents in your area for comparables. They should do that for you for free. With any investment, there is ALWAYS a risk. If you don’t take the risk, you will NEVER know how it would have turned out. Consider, LOCATION,PRICE & REPAIRS. —Hope this helps you. Good luck!
You know who your expert assistant needs to be?
A state licensed appraiser.
You also need to take a real estate class to learn the laws and how the game works…they will teach you a short section of how appraisals work and how to come up with values.
If you get your license, you can also get access to the MLS to do your own research…ALL of the investors I have worked with are also licensed agents.
Based on what I have seen in the market in your area, thats not a bad price. But who did the apprasial? I would have my own done to make sure what you are being told is true. I would also get an estamate on what it will cost to take care of any isues with the home and deduct that from your offer.
As stated above, get a current appraisal. Also, unless you are very knowledgeable about construction and other costs, get a home inspection done. Use both of those numbers to base your offer on. Just because the asking price is $250K, that doesn’t mean you should offer that amount.
The CA market is very slow right now, and will probably remain so for at least another year IMO, so make sure you know exactly what you want to do in terms of an exit strategy, and confirm all of your numbers related to that strategy. If you are considering renting it out, confirm with a local realtor how much the house would rent for in a reasonable amount of time, and how much cash flow it would generate. If it doesn’t cash flow, I wouldn’t consider that as an option.
If all of your numbers/assumptions in your post are correct, and the current market value is $750K, this is probably a great deal that you might want to consider flipping. There seems to be enough spread to do a quick flip.
Good Luck!