When a great deal on an REO (lender owned) or distressed single family home opens up, there isn’t a lot of time to consider before making a bid on the investment. Some potential buyers may find it hard to resist an appealing price tag. If you are one of those buyers, first consider these 5 criteria for what Bay Area Recovery and Reinvestment would deem an “immediate pass.”
1. Nearby Commercial Sites – Noise and the comings and goings of a commercial property will drive renters away and drive down resale value.
2. Square Footage to Number of Bedrooms – A 3 bedroom under 1,000 square feet? That is probably not enough space. Tenants and owners alike prefer to have standing room on both sides of the bed.
3. Dead End Street – Don’t confuse a dead end street with the more desirable cul-de-sac. Dead
end streets can often be dark, inconvenient and an overwhelming nuisance.
4. Apartment Buildings Nearby – Single family neighborhoods provide a sense of stability and community. While rental complexes and duplexes don’t necessarily equate to occupant turnover, their presence can drastically spoil the appeal of a neighborhood.
5. Lack of Curb Appeal – Perhaps the hardest to define but most important consideration for a single family property. If it doesn’t look like a home or lacks character and warmth, buyers and renters may be turned off.