Really Cheap Homes - good deals? - Posted by Ryan

Posted by Matt on May 24, 2000 at 12:52:58:

It might be best to purchase the home,or homes and rent them out. If you make a little a month your doing well, because your building equity and someone else is paying your morgage. Just my opinion though

Really Cheap Homes - good deals? - Posted by Ryan

Posted by Ryan on May 24, 2000 at 09:13:47:

My wife and I have been researching our local market, and there are a couple towns in our area where the home prices are just rediculously low. I know it’s because the school system is horrible and the towns have bad reputations overall - but seeing a single home for only $45,000 really makes me wonder if there isn’t some potential there…
Is it possible to flip properties in a market like this? Or would some other method work better?

Re: Really Cheap Homes - good deals? - Posted by Jim

Posted by Jim on May 26, 2000 at 24:31:20:

I would do some indepth research about…

Neighborhoors. You don’t want to own houses in neighborhoors that have drugs, assalts and shootings in. Not good for property values.

Market trends. Talk to companies who do closings about market trends and see if they can give you stats and maybe insights on reasons (if going down).

Market Values. The same people can give you Value analysis, which areas are better or worse.

Jobs and Income analysis. Are the people you intend to install in the properties able to pay rent or financing. Good place to look is the records office and look for numbers of defaults and bankruptcies.

If these are favorable, then you just might move right in and make a killing. BUT if not, apply caution. Myself, I wouldn’t mess with rentals and tenants (in low income areas). I’d rather have buyers of good deals I can create for them. Give them the PRIDE of ownership over being just a tenant. You may have less problems with them and you get more of their money in your pocket.