2107 South Wolcott Court

I just went and checked out 2107 South Wolcott Court here in Denver Colorado. It’s a HUD that popped up and is priced at $277,000.  The HUD website says it’s a two bedroom one bath,
but they always do that, they only count the upstairs, so there’s a full basement doubling the size of the home. I would consider it a four bedroom two bath and you can pretty much double the square footage of the upstairs (1244) so it’s about 2400 square feet in total.

The roof looks shot but the home has good bones.  They have replaced the original windows with some decent double panes. It definitely needs a kitchen. There’s oak flooring upstairs which could be refinished, not all the houses in the area have the oak so that’s kinda nice to take advantage of.  These were mostly made in the late 50s – early sixties so there’s certainly a quality of materials you can’t find in newer homes.  What I mean is you get real oak flooring, the joists are real 2×10 pine not the particle board I-joists they use now.  Being a brick house there is far less painting to do, speaking of which, this house could use paint on the soffit and facia. It has a one car garage and there’s a nice big fenced backyard.

I think $277k is pretty high for the condition. It needs a full remodel. It’s open for owner-occupant bidding right now. These are “as is” so they’re not going to fix anything, even if you get an inspection report they won’t look at it, don’t want to hear it and I don’t want to fix it. They make inspections difficult so you probably won’t get the water turned on or the electric turned on…This eliminates even more buyers, so your chances of getting it priced well are pretty good. From my experience you can come in it 93% of asking and they’ll give it to you if no one else is bidding against you. That puts the price at $257,610. I think it could use about $30,000 worth of improvements and then you’d be sitting on a house that’s worth about…. I’m going to say the mid 300s if it was all fixed up maybe even high 300s if you put in granite and stainless steel appliances.

Yep, I just pulled comps and it’s sitting pretty.

Shoot me an email for the comps. or a copy of the full “property condition report”.

Nick

 

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5 Tips for Buying an Investment Property

 

Buying an investment property is a bit different to buying a home. Since you won’t actually be living in the property, at least not in the long-term, there are a number of different things to consider. If this is your first investment property, read on for some useful tips to steer you in the right direction.

What Type of Tenant Are You Hoping to Attract?

Most investors buy property with a view to installing a tenant, either in the long-term, or for short-term holiday lets. Think carefully about what type of tenant you are hoping to attract, as this will influence what type of property you buy. For example, holiday lets work best when they are in a tourist town or on the beach, whereas young professionals will probably be interested in apartment living in the city. Once you have decided who your ideal tenant is, you can start looking for a property to suit.

The Right Location

Location is important. Rental income is a factor, so it makes sense to buy a property in an area that fits your target tenant, e.g. if you are hoping to attract a family, look for a family home within easy reach of local amenities and good schools. However, the other main consideration is capital gain.

Some properties appreciate more than others do. The hard part is figuring out where the best area to invest happens to be. This is where an experienced realtor comes in, as they know the local property market inside out and should be able to advise you on which areas are on the up – and which areas are sliding downhill at a rate of knots.

Find an Experienced Realtor

An experienced realtor such as Roost Real Estate will come in pretty handy if you are buying your first investment property. Realtors know the local area and can offer you advice on the local property market. Pick their brains on rental returns and what type of property is in demand. With their advice, you could end up buying the perfect investment property, but if you go in with your eyes wide shut, it could be an expensive mistake.

Secure Funding

There is little point in looking for an investment property without funding in place. If you are a cash buyer, great, but most property investors use equity or a mortgage to fund their first purchase. Look at your option and speak to a few lenders to see whether you for their lending criteria. If you plan to let the property out to tenants, you will need a specialist mortgage, as well as a deposit.

Look for Property Bargains

There are always bargains to be had in the property market – and unlike a homeowner stuck in a chain, you can afford to be patient. Bide your time and look out for foreclosures and property auctions. This type of property is usually sold at below market value, so it represents excellent value for money. However, you will need to move quickly and have your finance in place.

Property is almost always a good investment, but look at your options and take professional advice before you buy.

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