Thanks for the details Housebroken
Q on your statement “If my strategy was to buy and flip, I probably wouldn’t have bought this home”.
Q: Are you saying that you could not flip it for 106K after repair?
Also some more Q’s
I got following description from Glossary at REICLUB but still could not understand what is HUD foreclosure?
Housing and Urban Development (HUD) - a federal government agency established to implement certain federal housing and community development programs.
New Proposal :-\
Here is something I had in mind, would love to get you Guys opinion on it.
In Columbus market, appreciations are in the range of 3 to 10% depending on the area, so I am not sure how much investing in New Construction and resell will get me. Seems like there is lot of construction going on though, especially in the suburbs where I live (Powell). Hottest market is obviously 200 to 350K price range for homes.
In Powell (Powell was listed 18th best place to live in US in recent report by money magazine, see link http://money.cnn.com/best/bplive/snapshots/30262.html), homes are pricier and bigger, new builds in price of 500K to 800K are going up a lot. School system is among most desirable and crime rate is very low.
Now, someone wanting to buy a home in 500 to 800 price bracket generally have lot of buyers wanting to build a semi custom home using may be a small custom home builder or so. Obviously, they can always buy from the builder’s plan but if someone wants to buy a lot of his own to build on it the way he would want to then lots in newly developed communities are just very scarce. Land developers also discourage selling lots to individual owners as they do not want one or two lots sitting vacant when everybody has built on the lots. People camp out in front of developers office at 3:00 AM in the morning to get a lot. Some developers are doing lottery system now to allot the lots.
No Guarantee that anyone will get a lot. You put down a deposit of 10,000 and then wait for the allotment day. If you do not get lucky then all you loose is interest on 10K for 2-3 months.
Having said that, I still have not been able to pull out enough data or history on if this has worked for anyone in the past as an investment. From the look of it though, if I wanted to build a home of 500K and above in a good neighborhood and could find a lot which is may be someone is selling at 30K profit or so after a year or so of the neighborhood started, I would buy it as component of extra money (30K on 500K is small). BTW average cost of lot from developer depending on the size and location is 120 to 200K.
Let me know what you think. Worst case scenario, I don’t think that I will loose any money in it and I can test the waters in a couple of months to year’s time frame.