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buying rental property in an area that has had lots of foreclosures?
Old 01-11-2009, 11:31 AM   #1
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buying rental property in an area that has had lots of foreclosures?

I am living in area that has some of the highest foreclosures in the nation, where are these people going to live? they will still need need some place to rent? wouldnt rental property be a good investment, like 2 bedroom condos, etc?
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Old 01-11-2009, 01:55 PM   #2
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I don't know but if they can't make the payments on the house now how are they going to pay you a rent factor to cover your costs?
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Old 01-11-2009, 07:00 PM   #3
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Old 01-11-2009, 07:16 PM   #4
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In my area the rental pool is huge. The foreclosures up. there are deals to be had for those with cash or financing.

i say go for it if you know what you are getting into. Shouldnt be hard to get into a house for 50-60% of tax value.
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Old 01-11-2009, 08:17 PM   #5
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Old 01-11-2009, 08:19 PM   #6
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Old 01-12-2009, 08:42 PM   #7
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I am living in area that has some of the highest foreclosures in the nation, where are these people going to live? they will still need need some place to rent? wouldnt rental property be a good investment, like 2 bedroom condos, etc?
It could indeed be a great opportunity. I'd want to be sure I'm not trying to "catch a falling knife" at this point though. Some markets are in free fall and there's more down-side to come. The gov't is trying to (wanting to) arrest the fall in housing prices but I don't know if it can be done. These prices need to fall to a level that are in line with household incomes. In many places they're still too high, the way I see it.

Good luck.
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Old 01-13-2009, 10:34 AM   #8
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Yeah there's $$ to be made; just make sure it rents at a positive cashflow and buckle down for the long haul. Even if prices dipped more, you won't really care if you're making $$ every month.

As a very rough guide, pay the mortgage with HALF the rent. If this can't be done ... wait ... better times are coming.

FWIW, I am watching "big players" (think 100's of units) picking up 4-6 family multis for ~185k. I said the price was too high ... they say "but the numbers work ... so who cares".
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