Any Expereice With Foreclosed Properties ?
I have an opportunitiy to buy town house in great area and in a complex where in last few years the units were sold in 170s to 180s. Now due to bad management and a great number of foreclosure I can buy units in 50s and 60s. at least 1/3 of all units are out for sale and every bank owned units are trying to sell hence a great price drop. I wonder if this is an opportunity or high risk . the general area is still appreciating but this particular complex has the problem . I would like to know any of yours experience and advice as to is it a risk worth taking.
I would say it is both an opportunity & high risk. If you are only able to buy one unit in the complex, you have very little control of the conditions of the other units. Those bank owned units will continue to depress values until they are sold.
If you are able to rent the unit & have cash flow then I would proceed.
I would not proceed if my only exit strategy is to try to compete against the other bank owned units for resale,
Thank you sanjosee and cjmazur for your interest.
Like sanjosee pointed out I will have to rent it. But the probelm I see is that many people do not want to rent
if so many other units are empty.
CJMazur you mentioned getting a parter from TCI, how can I do that ? as I understand this section does not allow to advertise.
Also normally I saw in discussion board everybody looking for NOI of 10% in Newyork and Pensylvania, but in this case since the appreciation rate will be greater due to good area and discounted price, what would a reasonable investor would look as NOI ?
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