For investors wanting to purchase foreclosed single-family units to use as rental properties there is a negative side. These cons do exist and are significant. A buyer's agent should remember the following-generally, the condition of the foreclosed property is poor; and there is an incorrect assumption held by many investors that tenants are willing to accept tired and worn out properties to call home. While vacancy rates have fallen, it is still a tenants market. As a property manager, my customers (tenants) are demanding clean and functional homes to live in. Be certain your client is prepared for necessary rehabilitation costs connected with most foreclosed properties.
Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, and manages 150 single-family units in metro Denver. He is a speaker, consultant, expert witness and holds the Master Property Manager (MPM) designation awarded by NARPM. He has served on the National Board of Directors of NARPM. His firm holds the Certified Residential Management Company (CRMC) designation also awarded by NARPM.
Peter Meer provides information, resources, advice, tips, and techniques on residential property management in Denver. Peter Meer is President/Broker of Meer & Company, Inc. (303) 322-1550 and manages 150 single family units in metro Denver. Visit Meer & Company, Inc. at www.meerandco.com.
Thank for providing this vital information.
ReplyDeleteAlso what one needs to look upon is that when you take part in an auction,be careful to have and stick to a budget and not to get into a bidding war that can make you pay more than what is appropriate and hence make you loose money.
Property foreclosure