Rehabbing Single Family Homes
Add to your portfolio, or start your real estate investing by buying single family residential homes (SFR’s). Take a hard look at your market for bank owned, government owned, estate sales, and motivated sellers of SFR’s. They are out there!
To get started find a good residential broker who will tell you about every property that comes on the market in the price range that you specify. Personally call bank foreclosure department personnel. Read all newspapers, and tell everyone that you are a buyer of SFR’s. This should bring you leads that maximize your time by not having to drive around all day looking for “For Sale” signs.
How do you know if you can make money on a property you have selected? First establish what return on your total investment you want to make. Find out the true market value of the house. Subtract the buying costs of acquiring a house, fix-up costs, holding costs, and closing fees for when you sell or trade it. Subtract the rate of return you want or the total investment. What is left is what you can pay for the house.
Use all the various ways to acquire the property such as exchanging other real estate, exchanging personal property, obtaining owner financing, options, and any other methods you can utilize.
Once you have it ready for market you can list it for sale, owner finance it by deed, or by contract, exchange it for other real estate, keep it and rent it out, plus many other ways to use your equity.
Remember – most lending institutions public or private, view single family homes as one of the most secure assets. Once you have completed buying, fixing, and selling a house, figure out your profit. Change the way you do the next one if you are unhappy with your return, or if you hit your mark of return on your investment, just keep doing more!