In real estate, investors must always find more properties to rehab and sell. You constantly have to look to your next deal to stay successful. When the market gets tight, competition for homes in the best condition gets tough. That’s where distressed or run-down properties come in. These are often the last houses left for sale. They look like too much work for the average person. But with the right know-how, these can be great investments that will pay off in a big way.
What is a Run-Down Property
So what makes a property “run down?” You’re looking for homes that don’t seem to be getting much love. Start with the lawn. If the landscape is wildly overgrown and unruly, it’s a sign that no one is taking care of the property. Peeling paint, bad siding, busted windows, or shoddy roofs also indicate that the person who owns a home may not have the time or money to take care of it. Any city notices or posts on the building that indicate the home is unsafe or condemned are another way to know a property is run down. Challenges like these tend to scare away most buyers but could make the property perfect for you.
How Do You Find Run Down Properties
Finding a run-down property for sale takes effort. Start by cruising neighborhoods you want to get into and looking for any clearly in distress homes. Talk to people; ask if there is a home they know is abandoned on their street. Use property records to see if you can find the owner. You may find evidence of a property with financial problems, like tax delinquency or pre-foreclosure. When owners aren’t staying current on tax or mortgage payments, they may be eager to get the property off their hands. If records show that the owner lives out of state, make a move! A qualified skip tracing company can help you connect. You may tempt them into a deal by reaching out and offering a quick sale. And check the open market. Anyone listing a home “as-is” may have a house that needs a lot of work, letting you get a bargain.
Take Your Time to Look as an Investors
Once you know how to find run-down properties, it’s time to decide whether to buy. Put in the work and look at the deal as an investor. While you may be able to make the purchase at a low price, consider the rehab. Does the property need cosmetic and stylistic repairs, or are there serious problems? Sometimes neglected homes are left because the current owner wasn’t ready for the amount of work. And there may be code violations in the home that the local government will make you address. Look at the foundation, plumbing, and electrical to get a realistic idea of your total investment. Ask for an inspection if you’re able.
Why You Should Invest in Run Down Properties
They can be a lot to take on, but you gain way more options as a real estate investor when you know how to find run-down properties for sale. Taking on projects that others are scared of can increase your profit margin. Your pool of opportunity increases tremendously when you’re willing to put in the extra effort. There’s also a more community-driven reward; neighbors will be glad to see an eyesore of a home restored. It boosts their property values!
Key Takeaways
As you grow your real estate investment business, start considering run-down properties. By training yourself on how to find them, evaluate them, and restore them, you make new opportunities for yourself. You can make sure you always have a project in the pipeline by getting creative.
