Posted by Sailor on November 19, 2006 at 12:45:19:
Because of mkts like this, many of us have switched to MHs. I’ve
always liked bread & butter investments, & w/the economic
problems we face (in spite of how the gov’t chooses to view the
stats), MHs are now very suitable investments. There is a MH
Forum on this site & a Chat Group on Wed @ 9 pm ET.
Tye
My area is very overbuilt, seeking opportunities - Posted by Bruce Reeves
Posted by Bruce Reeves on November 19, 2006 at 10:15:06:
I live in Northwest Arkansas, an high growth area for the last five years. Builders have managed to build way too many homes even in this enviroment. One of the largest builders filed Chapter 11, with more builders filing expected. Average home price is about 168k.Thousands of unsold homes sitting vacant.
What is the best approach to benefit from this situation? Educate myself on short sales or foreclosure?
I have some experience in creative real estate having done a lease option and a minor re-hab and am aware of other techniques like subject to, etc.
Glad to see this board still active. I was a regular reader in years past. I should talk myself into going to the convention. I went to the first one in Vegas in 1997, I think that was the year. Do ya’ll still present the Blue Vase award?
Thanks
Buy low and hold - Posted by LK
Posted by LK on November 19, 2006 at 15:32:06:
I bet the $168,000 houses that are listed for $145,000 are selling with no problem. So I would buy for $105,000. Are there many $168,000 houses in real good shape listed for $105,000? Probably not.
The market for older rehabbed homes may be good even if the new homes aren?t selling. I just got a contract within 7 days of listing a 50+ yr old home that I completely remodeled in a market with heavy new home construction where new home sales are declining. Probably because this house was $95,000 where a comparable size new home would be $125,000.
No matter what the age of the house, it?s still all about location. Some of the best locations (existing schools, shopping, hospitals, etc) are already taken with existing homes.
On the new homes that arent selling you may could find a builder in trouble willing to sell for cost. This possibly would allow you to rent the houses for positive cash flow while waiting for the market to improve.