subject: Before You Rehab A Distressed Property [print this page] One of the good things about investing in a distressed property is that you can use any real estate investing strategy that you can think of. Distressed properties are flexible. You can either flip them for profit or do a wholesale. You can also try fixing them up and then leasing them out to tenants. But one of the best strategies that you could use on such investment properties is to fix and flip them to generate positive cash flow for your real estate business.
Rehabbing distressed properties is probably one of the easiest ways to make money amid the ongoing economic recession. With a multitude of motivated home sellers who are willing to get rid of their houses for just a small price, it is much easier for most rehabbers to obtain affordable houses to fix and flip. In addition, you can easily find another deal once you have completed your previous rehab project.
Although it is much easier to find a distressed property to rehab than before, it doesnt mean that a real estate investor like you should forget about doing your research or observing due diligence. With the growing number of undervalued homes and foreclosed properties in recent months, there has never been a better time to remain vigilant than now.
Before you purchase distressed home for rehabbing purposes, you have to ensure that you have done your homework first. See to it that have made a comparative market analysis so youll have an idea on how much the property is really worth. Just because a deal looks too good to be true, it doesnt mean that you should let your guard slip and buy a distressed home from a motivated home seller without taking a good look at the property first.
Find out everything you can about the property. When negotiating with a motivated home seller, ask a lot of questions regarding the distressed home that you want to fix and flip. Inquire about the age of the property and ask pertinent questions regarding the title.
If you have money to spare, it would be wise to use them on a property inspection. Obtaining the services of a property inspector can help you determine the amount of money youll need to rehab the distressed property. In addition, it can help you identify your offer price.
Before you rehab distressed homes, it would be wise to do your homework to avoid betting your money on the wrong property. Meanwhile, if youre looking for a list of distressed homes in your area, visit www.RehabList.com.
