Earning Passive Rental Income By Investing In Foreclosed HomesWith the number of foreclosed homes at an all time high, there are plenty of opportunities for people to buy one of these homes to use as an investment. If you are considering this, then always be sure to do thorough research first. You need to know exactly what work will be needed to get the house in a rentable condition.
First and foremost, you should find out more about the area in which the foreclosed property is sitting on. Always make sure to check the types of homes in the area, schools and amenities as this is a strong consideration for potential to rent your place. A quick tip would be to look through the local papers for comparable rentals to see what the going rate would be.
When you are looking for foreclosed homes, check for those that are going to auction - often times these can be the source of a great deal. Be prepared to buy a property without an inspection as this is quite common with foreclosed homes.
The better and sometimes safer option to choose a home is going through a real estate agent and look for fully bank owned (REO) homes which are on the regular market at this point. For such properties, you have the luxury of viewing the property and do a decent home inspection.
A real estate agent can also hold your hand through the entire process if this is your first time. They will have the best knowledge of the market and what properties are currently available. They can also help you secure a better deal on your mortgage.
It is always recommended to secure financing before making the purchase. Once you have purchased the home and make the necessary repairs work, be sure to set aside some reserve fund in case you can't find a tenant right away - you are ready to list it for rent.
You can list your rental in the paper or with the MLS system which gets plenty of people searching through it every day. Set a price that is in line with the local market.
Apartment buildings tend to rent for less than a home does, so you may need to throw in some extras to gain a reputable renter.
About the Author:
Jared Wright is the webmaster of Clivir.com where people meet to learn from one another on topics such as foreclosures. You can follow the links to find more related foreclosure articles: www.clivir.com/lessons/show/what-are-the-ramifications-of-a-foreclosure.html