foreclosure in san diegoAsk yourself these three questions before looking into buying a foreclosure (REOs):

1 – What do I plan to do with my foreclosure purchase?

2 – Am I willing to put in the physical work needed for repairs, or can I afford to hire someone else to do it?

3 – Do I know the best areas to look for REOs, foreclosures, and bank owned homes?

Why bother with a foreclosure? To maximize your profit, of course? For those willing to invest their time, labor, and patience toward the renovation of a diamond-in-the-rough, the rewards can be amazing.

First, find the right location. San Diego is great for foreclosures, about 1/3 of all homes here are under water (owners owe more on their home than the home is worth). It really is true – location, location, location, that’s what it’s all about in home value. It’s best to look in the lower to middle class neighborhoods if you’re thinking about renting out your new foreclosure later. It’s also best to acquire a multi-unit property to maximize profit even more.

Believe it or not, your foreclosure acquired rental property will recoup a larger percentage of the total cost of the sale and fix-up if it’s in a depressed area (more renters than owners). This is because the worse our economy becomes, the better things get for all the landlords and potential landlords (like you) because all the former home owners who can no longer afford to keep their homes flood the rental market and the median price of rent rises! Unfair, but true, and good for you!

If you are seeking a place to call home, not an investment property, it’s always best to look for the best bargain you can get in the best neighborhood you can find, even if it’s the smallest, shabbiest home in that neighborhood. Why? You’ll always make a larger gain on your investment (when you do eventually sell your home) by fixing up a small home on a great street than by only doing minimal repairs to a beautiful home on a not-so-great street! Your extra effort will create a beautiful home for you, add to the property value for both you and your neighbors, and become a great potential MLS sale later on when your family wants to upgrade. See all San Diego neighborhoods with foreclosures at now.

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