The real estate world is a funny one. Everyone is out to get the best deal but nobody wants to compromise. In addition, some investments have been found to be “controversial”, for lack of a better word. If you go talk to different investors in Houston, Texas, and learn that while some are scared off, others swear by it. And that’s okay because distressed properties are not everyone’s cup of tea.
We Buy Fast Houston Houses love investing in distressed homes and that’s why today we’re going to talk more about them. So, if you’re looking to invest in these properties, you might want to go through this article.
What’s a distressed Houston property for sale?
If you come across a distressed home for sale in Houston, Texas, all you have to know is, the lender who financed its purchase listed it. The owner or some real estate investor did not put it there. And what does that mean? That means whoever owned it was not able to keep up with their mortgage payments. Hence, reclamation by the bank or lender.
Real estate investors love buying distressed houses because they are normally listed below market value.
The pros of investing in my distressed home in Houston, Texas
- High ROI
That’s right, folks. A distressed house in Houston, Texas, can offer a substantial ROI. The low price point means you won’t feel financially burdened while dealing with it, as you would with other investment properties. On top of that, you can make significant upgrades and sell for large sums.
- Huge potential
There’s a lot of deferred maintenance in a distressed property, and that’s expected seeing as the previous owner was struggling to keep up with mortgage. A quintessential property buyer will focus on the current condition of the house but a real estate investor will be blind to all that. They’ll instead focus on what the home can be. It’s future potential.
The cons of investing in my distressed house in Houston, Texas
- High renovation costs
Like we mentioned before, the maintenance was obviously deferred. If you want to earn a substantial ROI, you’ll have to invest a good sum of money on the repairs and upgrades. But be careful when spending because not all improvements will add value to a home.
In addition to the money, you’ll also have to take into account the time taken to complete all repairs. A project that takes months to complete is just not worth it. Invest in something that will demand a couple of days or weeks.
- High competition
Because they are always sold below market value, the competition is always fierce. You snooze just a little bit, you lose. Investors have caught on to the potential returns here. The market is rapidly populating. If you want to scoop the best deals, you’ll have to be smart with the moves that you make.
Are you interested in distressed properties? We Buy Fast Houston Houses has great deals for you.
