HOW TO MAKE MONEY IN SHORT SALES?

August 24, 2010 at 12:35 pm Leave a comment

by: Maria Hass

The conditions surrounding today’s real estate market are interesting and something most of us have not seen in our lifetimes. Short sales continue to dominate the inventory, and if you are a savvy investor with cash or enough to make a large down payment, you might take a chance on purchasing short sales to rent out.
Although short sales take a longer time to close, the properties are oftentimes occupied by tenants who would like to continue renting from the new owner. Many starter homes in Pinal County, San Tan Valley, Apache Junction cost 50 percent less to buy than to rent.
Say for example, a 3-bedroom, 2-bath home I listed recently in a great location in Apache Junction. A Canadian cash buyer purchased the home for $70,000 in one day. If it were financed, the monthly mortgage payment would have been around $300 – $350. The going rental rate in that neighborhood is $850 – $900 a month. This means an immediate 75 percent positive cash flow — way better than what you can get for stocks or bonds.
I have another listing in San Tan Valley. The home is in a popular neighborhood and in pristine condition, listed at $105,000. The monthly mortgage payment is estimated at $450 and the rentals in that area are going for $1000 per month. This is over 50 percent positive cash flow.
The rental market remains strong, as many people leave their homes due to foreclosures and short sales.
If you are thinking of making money in real estate the right way, please contact my office at 480-650-0075.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , , , , .

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