How’s it going everybody?? I’ve been driving around the city of San Antonio to find where I should market my REI service. Now obviously if im looking for rehabs I want to find properties that are kind of old but when im looking for preforeclosures is it good to find an area that has high property values. Im just thinking that if somebody needs to get rid of their property in a really rich area there is a higher spread for my profit. But also these people are more sophisticated and its going to be harder to sell them my service. Whats a good demographic for preforeclosures?
A part of what you do needs to depend on your exit strategy. If you going to rent or l/o look at your “affordable housing” numbers. In my area it is (according to my local board) 125k. The city number is 110k.
Stay in price ranges most people with jobs can afford. You will always need a buyer or tenant. Too low and you get interest from people who cannot buy. Too high and you have narrowed your market again.
Most investors in my area look for the sweet spot of 80 to 130k. Adjust those numbers for your area. Average sale price from your realtor should ball park, stay on the lower side of that.
Jan