JUST SOLD IN LAKE CHARLES LA!
Lake Charles Investors and Lake Charles Home Buyers look at property very differently. Investors in Lake Charles LA are always looking for homes that can be rehabbed and either rented or SOLD for a quick profit. The home buyers who will be owner occupants always prefer a newer home as opposed to an older home that may require work.
When searching for investment property, the investor client can overlook cosmetic issues with a home. Stripping wallpaper or painting kitchen cabinets are an easy fix. The investor is going to do some remodeling and updating and will already have a budget in mind when viewing Lake Charles Homes for Sale. So the investor is looking for a home with what I like to call "good bones " meaning, existing living space and structure. An investor's eyes can see the potential of the property and this listing that just sold at 4809 Ponderosa in Lake Charles is a good example of what a good investment is in Lake Charles.
4809 Ponderosa was a one owner homer that was neat and clean and only in need of a few modern updates. The home was structurally sound on a slab with a brick exterior and 5 year old roof. The investor buyer was not turned off by the wallpaper, older carpet and 50 year old ceramic tile bathroom!
Although most investors have a formula of return on investment, buying the cheapest is not always the best method when beginning a search of Lake Charles homes. A $30,000 property vs. a $100,000 property comes into play.
For instance investors who purchase homes for sale for $30,000 or $40,000 may be getting more than "TLC" projects and could very well purchase a foreclosure. When paying a cheap price you may end up paying the price with structural issues, termites, plumbing HVAC, electrical repairs or worse!
Also compare the style of the home being purchased. A cottage style home on piers will typically be a smaller structure than a traditional home on a slab and the rental income will also be a variable. An 890 sq ft cottage home on piers may rent for $600-$650 a month in Lake Charles whereas a 1600 sq ft. brick home on a slab can rent from $1,200-$1,500 monthly in Lake Charles!
This home located at 4809 Ponderosa Drive is located in the Southern portion of Lake Charles. 4809 Ponderosa is a 50 year old 3 bedroom 2 bath home with 1660 sq ft built on a slab. The lot size is 105 x 119. This is a traditional style home which is appealing to Lake Charles residents who would like a fenced yard with a nice size floorplan!
4809 Ponderosa was an heir property listed for $109,000 and sold for $105,000. The sellers gave the buyer a $3,000 repair allowance. The Market Analysis showed similar homes on the street have sold for $159,000-$165,000. Purchasing the property at $105,000 with a $25,000 budget the investor ends up with $130,000 investment in this South Lake Charles home.
Once improvements are made this home can be easily rented for $1,500/mo or listed for sale. If the investor choose to sell the home, the ROI (return on investment) could net anywhere from $20,000-$30,000. This is why 4809 Ponderosa went under contract the first day it was listed in the MLS---it is a smart buy!
If you are an investor in Southwest Louisiana, give me a call. I would love the opportunity to earn your business and be on the lookout for another property like this one for you!