Even, perhaps especially, in an economic downturn, people are trying to make a living in the real estate market. โFlippingโ houses used to be a great way to make a little cash, but not now. Many are now looking at long-term cash prospects, such as renting property, and Statewide foreclosures seem to be a good start. But are they? Letโs take a look.
Finding a good rental property isnโt easy. Itโs not like shopping; you canโt go into a real estate store and grab the first house off the rack that looks good on you. Itโs a process of investigating, gaining knowledge and being realistic. This is especially true when looking at Statewide foreclosures.
Homeowners who suffered foreclosure were unable to pay the mortgage. We all know that. What people usually donโt think about is that the homeowners were probably also unable to pay for upkeep. This means that you, as the buyer, have a larger possibility of buying a money pit rather than a moneymaker. Keep this in mind as you look over a few tips for finding good rental property:
Location โ Since youโre looking at foreclosed properties rather than properties that are already set up for renting, you canโt check established rental records. However, you can ask your real estate agent for a list of areas with less people moving out and more moving in. As well, look at areas with surrounding retail development. New shopping malls, theaters and restaurants will bring in more people to an area.
Addition and subtraction โ Itโs time to do the math. Ask your real estate agent for what the going rental rates are in the area youโre looking at. Youโll need to find out if the rent you can charge will take care of expenses as well as bring you profit. Figure the yearly income you can expect to make and then subtract mortgage payments and operating expenses. If your math produces a negative balance, don’t buy the property.
Taxes โ Once you pay expenses, your income is taxable. Now, while you can depreciate rental property, you canโt depreciate the land itโs on. Talk to a real estate agent or accountant to decide whether itโs worth it or not.
If you follow these three tips and remember to pay attention to the amount of repair needed, you might just find some fantastic deals on Statewide foreclosures. Take a little time to make sure renting is for you, and then get started.
If you are considering selling your home, be sure to contact us at (305) 506-1641 or email us at info@slamdunkoffers.com so we can provide you with a Fair Cash Offer on your Statewide house.
Want To Get A Cash Offer On Your Statewide house?
Please fill out the quick form below, and we will be in touch with you shortly!