Recently the Orlando Regional Realtor Association reported that Bank-owned and short-sale properties account for a record 75% of home sales. (February 14, 2011) This is no surprise to us that live and breath the market. After the Real estate bubble burst more and more homeowners have become distressed and the real estate market has been saturated with distressed sales.
However in 2010 only 8% of home buyers bought a home in foreclosure. This is because foreclosures are in much worse condition than the short sales and normal sales and a lot of work has to be done to the property before it can be used as a home again. This actually presents a great opportunity for investors. It is difficult for home buyers to buy these homes because usually home buyers need a mortgage and when you are buying a foreclosure it may not even reach the minimum for the home buyer to get a mortgage on the property. When you find a foreclosure that is selling for $30,000, mortgage companies will not finance that purchase.

Case Study: We helped an investor purchase a property in Sanford in Seminole County, Florida

This property was a Fannie Mae property, it was 5 Bedrooms, 2 Bathrooms, 1,400 sq. ft. heated. The investor bought the property for $42,900, after iSanford Real Estate Investmentnspection and closing costs it was $45,000 to buy the property. This 2003 home had not been lived in for 2 years prior to the sale, with no A/C running inside the home humidity started building up inside, this lead the cabinets being ruined because they had become warped. The A/C unit outside was missing as well as the inside unit had been stripped, doors were missing, the thermostat had been ripped off the wall, the waterheater did not work and all the appliances had been trashed.

This is exactly the kind of property that the investor was looking for!

The cost of restoring this property was almost $10,000.

Once the property was ready, it was rented out immediately. We had found tenants for this property while it was still being fixed up.

This particular investor will have made back his investment in 6.5 years, in that time the property will also have appreciated.

Seminole County Investment PropertySeminole County Investment Rehab property

These photos show the before and after of the Kitchen remodel on this Sanford property. For more photos of this investment project visit our Facebook page.

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here.