Ok, say you find a house for sale at 20-30K under it’s appraised value. What would be the best way to attack it? Would you buy it and then try to re-sell it? Buy it and hold onto it? I seem to have run across several of these…most don’t need repairs. Some are new construction. Any ideas would be appreciated!
Thanks, Chad
I’d say what works for me, might not work for you or you might not want it to work for you.
Before investing, you should know what your ‘area’ is going to be…what niche you are going to work in.
If it were me and in my area, I’d buy as low as I could, refurb what needs refurb, put a renter in and then, using my rental contract and my newly painted/scrubbed property, I’d refi to get my cash out. This works for me here but others might not do that…others don’t want to refurb, etc. Others might just flip the contract for a few thousand and let the next guy worry about any fix-up and the retail sale.
My two cents.
Keith
to give you the answer you need what is the price range of the house if it is a 100k house for 20k off its a deal if its a 500k house with 20k off I would keep looking!
Like REO said, the deal may be real attractive. I’d tend to go by %s rather than $s.
I have some friends who buy properties valued at around $200k for $160ish. What they do is they purchase it with 100% financing and go back a month or two later and get a HELOC to pull out some profit.
There are several nice options assuming the equity % is high enough (in my opinion).
There are banks that will let you take the money out 1 day after close