Buying REO's
Since it’s more of a buyers market right now here in Castaic, and there are plenty of Bank Owned properties, investors have more homes to look at that would be potentially good rental properties. Why you ask? Because often these homes are left in need of repair, so there may be more leverage in negotiating price. Of course, the banks are not giving homes away, so keep that in mind when making offers.
'Average' homes in 'average' condition make better rentals than luxury homes in terms of maintenance costs. So, if you are handy, you could pick up a good property that needs some work and put a little 'sweat equity' into it.
There are plenty of potential renters out there who have been displaced through losing their homes via short sales and foreclosures. Unfortunate, but a fact. These folks need affordable homes to live in and investors have a great opportunity for a win-win between themselves, the bank and the renter.
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