Hey everyone–Hope today is great for you. My niche is taking REOs from banks in Atlanta at low 5 figure pricing, rehabbing them and selling them with a Section 8 tenant inside, paying $900-1100 per month, at a price point in the high $40’s. I’m just converting the first one in the next 4 wks. But I’m concerned about what I might find on the buyer end with lending drying up. What is the profile of someone who would be interested in a property cash flowing like this (15% or so ROI, taking into account financing costs to the investor), at this price point, and what can I anticipate their raising as an objection?
In my experiences, you will want to target
CASH buyers.
Especially in that price range ($40,000) you
shouldn’t have problem targeting cash buyers
for these investment properties.
It’s also a bit difficult to get traditional investor
financing for that low of a price, it can be done
but a bit difficult than if it was an $80,000 or
up priced property.
Be prepared to hold onto the property if you can’t
sell it. At least you have a paying section 8 tenant
in the property.
I haven’t personally tried selling an occupied
property to another investor, it was always
easier to sell wholesale properties vacant…
Scope out the area and call every “for rent” sign that you see and ask the landlord if they are looking for more rentals. A lot of investors are coming out of the woodwork right now because prices are getting so low…
In some counties, the Housing Authority has a website where section 8 landlords post their properties. In my county, the names and phone numbers of the landlords are posted on the website…