4 Tips for Buying the Best Rehab Properties
If you are looking to make a real estate investment in a property that needs a little TLC, there are some unique ways to go about finding the ideal property. Rehab properties are often sold through auctions and promoted in other ways, so being on the alert and aware of these listings is key. Here are a few tips on how to find and purchase properties that need a makeover.
Use the Right Key Words
When searching for a property to do some work on and then flip, it is important to use the right key words when searching for it. Phrases such as needs work, need to sell, and make an offer all indicate that this house requires some renovations before it is move in ready. Listings with these keywords are rehab properties so running a search on real estate listing sites with those phrases will help you find what you are looking for.
Look for Unwanted Properties
Properties that have been on the market for an extended period often have impatient owners. You will be more likely to negotiate the price of the property down. When you are looking at the listing, the reason that the property has gone unsold is usually apparent. Whether it is outdated bathrooms or green carpet in the kitchen, you can get a great deal on the house, perform some rehab and then make a profit off it.
Browse the Obituaries
Elderly people tend to neglect the upkeep of their home. When they pass away, the executor of the estate is left with a property that needs repairs and outdated. Many times, the family and executor want to be free of the property as quickly as possible and will readily agree to cash offers and selling the house as-is. However, it is important to be aware that this can be a delicate situation and it is important to be considerate of the family and the grieving process.
Ask Your Network
Do not be afraid to ask people you know about any leads on rehab properties. Friends that are also in the flipping business and contractors you have done business with can be a great resource for deals they had to pass on due to other commitments or projects. It is wise to also pass on leads to business acquaintances that you need to pass on so that the favor is more likely to be returned in the future.
Purchasing rehab properties requires diligent research. Rarely do these properties just fall into your lap. Keep yourself aware of the market and use multiple means of information to search for possible investments.