Cheap Properties You Can Fix and Flip Today
People are starting to fix and flip properties today for additional money. While some do it full-time, others carry it out during their free time. Much of the frenzy with rehabbing houses today has to do with the availability of affordable properties. There are a lot of properties you can fix and flip today and here are some examples.
REOs. This stands for real estate owned properties. These were repossessed by banks and other lenders from owners who fail to meet financial obligations such as mortgage. Also known as bank owned homes, REOs have already undergone the foreclosure process. All liens and claims against these houses have are already cleared so you will get a fresh title for the property.
Banks and other lenders, which own these properties, should not be maintaining a huge number of real estate owned properties. They can face sanctions from regulators for doing so. Apart from that, lenders also fear that these houses will tarnish their reputation. If a bank maintains a lot of repossessed properties that might give the notion that it is not careful in assessing borrowers. The number of REOs increased with the recession and is continuing to rise. Because of their number, banks have no choice but to dispose of them at very affordable prices.
Fixer upper homes. These are properties that are cheap because they are in disrepair. While some of them require only minor improvements, others need structural corrections. Avoid fixer upper homes that need repairs like total roof and ceiling replacement and correction of the house foundation. Structural problems can cost you big time and will demolish your chance of earning huge profit from a fix and flip project.
On the other hand, you must look for fixer upper homes that need cosmetic repairs. These are minor improvements like applying a new coat of paint, replacing door knobs, or laying out new carpeting. Landscaping the front yard, replacing lighting fixtures, and installing new faucets and water fixtures are also examples of cosmetic repair. If the fixer upper homes you want to fix and flip need only these repairs go rehab them.
Inherited homes. Though not as common as REOs and fixer upper homes, there are also scores of inherited homes found across the nation. As the name implies, these are properties inherited by owners who usually have a home of their own. These may be old homes owned by their grandparents or other relatives. Since owners have nothing to lose, they sell these homes cheaply to people who rehab properties.