Purchasing Hawaii Kai foreclosures has become quite popular lately. There are dozens of foreclosed properties hitting the Hawaii Kai market each and every day. These properties can be both gold mines and land mines depending on how you go about it. In this article, we'll discuss some simple ways to help ensure that your first foreclosure purchase is a successful one.
Opt for a Low-Repair Property for Your First Deal
We've all heard about people who make thousands of dollars buying foreclosures in need of TLC, fixing them up, and selling them for a profit. The reality is, however, that making sizable profits doing this is easier said than done and that doing such a deal requires a high degree of expertise.
Do you know how to fix a broken roof? Can you estimate how much it would cost to replace termite damaged walls or cabinets? Can you estimate how much each necessary repair will cost and compare it to your selling price in the end?
Although you can make a lot of money doing fixers, you can also make a lot of money just by buying foreclosed properties, doing minor cosmetic repairs and selling them again. For your first foreclosure deal, look for houses that don't require much work so you can get some experience under your belt with less risk.
Research the Nearby Market
There are generally three reasons you would buy a foreclosure: To rent out, to sell or to live in. If you're buying to repair and rent out or sell, then market research is absolutely essential.
If you're buying to rent, it's important to know what other properties in the nearby area are renting for. It's also important to know what the vacancy rates are. Based on these numbers, you can accurately predict what your cash flow will be like.
If you're buying to sell, it's important to know what you can expect to sell your Hawaii Kai property for once your repairs are completed.
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