Posted by GL(ON) on February 22, 2002 at 09:54:24:
A town in a temporary slump, or with some sort of crisis, is the best place in the world to buy. Provided the slump or crisis is the type that will blow over in a year or 2, not a chronic problem that won’t go away.
You should be able to buy all the property you want at deep discounts (20% to 50% off or more) and low or no down payment. The problem is to keep them rented, but you will be able to offer cheap rent since your cost is low. As long as you can keep them rented (cash flow) time will bail you out.
How much can you make? Well you say houses formerly $80 to $100K are now $50K. Let’s assume that’s the best you can do, and let’s assume that prices only come back to their old level, no higher. If you buy one house you will make minimum $30,000. ($80,000 - $50,000). If you buy 10, $300,000. If you buy 33, $1,000,000. How rich do you want to be?
This is the kind of place where you find motivated sellers, nothing down deals, and positive cash flow on the rent.
Does it really matter if it takes 1 year, 2 years or 5 years for the economy to recover? As long as you can buy for nothing down with a positive cash flow?
And there is an excellent chance that when the town recovers, real estate will take off, and your profits will be multiples of what I have shown, in a few years.
HI All- I have been visiting relatives in their town of about 100,000 people. They have a very high unemployment rate at 12.1%(county).
After some very long drives and RE searches their are alot of properties for good prices. Have reviewed cities websites and city council agendas. Sounds like this may be a temp problem in town, with major industries laying off.
Have done numerous MLS searches and find that their are alot of houses selling.Most houses are selling for 80k-100k. I’ve already found atleast a dozen at about 50k with FMV of 80-100k.
The local papers show about 141 houses for sale three offering L/O. Their are 59 houses for rent. This shows alot of investors renting properties not L/O.
My question: In a town that is in a down turn in ecomony, is it best to stay away from or p/u properties while they go through these times?
You want to hear something crazy! - Posted by EWest (MI)
Posted by EWest (MI) on February 22, 2002 at 12:22:44:
(Well at least to me)
I live in Flint, MI and in an article in the paper about a month ago I would have to say, they stated that there are 1200 houses for sale within the city. Than just the other day I was reading the paper and on the front page there is some lawsuit going on from tax sale buyers or something(didn’t pay much attention to it) and 2200 houses are going to go into foreclosure within a month I believe it said…that sounds like an awfull lot to me!