Anchorage Foreclosures and Short Sales: How to Spot a Good Investment
by Dan Wolf
on Thursday, January 22nd, 2015 at 11:15am.
With vacancy rates so low for Anchorage rentals, it is a good time to invest in real estate. When finding homes to fix up and turn into rentals, many investors gravitate toward foreclosures and short sales. On the downside, it can take a while to close on a deal on Anchorage foreclosures and short sales. On the plus side, you are more likely to get a great deal, which gives you more money to fix up the property to rent it out at a profit. An experienced Anchorage Realtor can also show you homes that are traditional sales. Some traditional sales also work as investment properties, especially if it’s a motivated seller. According to an article by interest.com, not all of the foreclosure deals are as compelling as they were when the housing recovery started. At the same time, smart investors know what to look for in a potential rental property.
• Taking a tour of the home
Whether it’s a foreclosure, a short sale or a traditional sale, never buy an investment without personally touring the property. Some investors buy repossessed homes at an auction. They aren’t permitted to enter the property before bidding. It’s far better to opt for a short sale where the bank is allowing the property owner to sell for less money than the owner owes on the mortgage.
• Relying on a home inspector
Another smart move to make is to enlist the help of a Realtor and a home inspector to figure out how much money you’d need to spend to make the foreclosure or short sale inhabitable by renters. Today’s Anchorage renters expect not only a safe and clean rental home or condo, but also one that’s up-to-date with contemporary interior. Whether you plan to install radiant flooring or just make a few cosmetic improvements, an inspector can tell you what’s right or wrong with the structure.
• Knowing your competition
You can rely on your Realtor to provide you with all the information about how comparable homes are selling in the area. Your Realtor can also fill you in on the market rent in a particular neighborhood. Homes with at least three bedrooms and two bathrooms are in higher demand than homes with just one bathroom. Also, the square footage of the home and the size of the lot will impact the amount you can ask for rent.
Ultimately, the best real estate investment in Anchorage is one that you can afford to buy and one that will give you the best return on your money. At Wolf Real Estate, we can help you find a foreclosure, short sale or fixer upper that would work as a great investment property. For more information investing in real estate in Anchorage Alaska, please contact us at 907.248.9653 or visit us online at www.anchoragehomesearch.com