So you want to buy a foreclosed home ?
Yes there are diamonds in the rough and some great opportunities to make some good investments by the way of rental homes and flips.
How do you protect your self when buying one ? Foreclosed homes are discounted for a reason many times it because of the physical condition of the home and its less desirable due to the repairs needed. I find many times the basic home requirements that every home must meet to be able to get a loan on the home is neglected. These items are Roof, Wood rot, Broken Windows, Floor covering and these are just the repairs you can see. The next level would be structural in nature like sills, joist, and foundation issues.
Here are some good tips to help you when making a decision
Look at what happened prior to the foreclosure
GET AN INSPECTION ! No matter how handy you think you are you don’t want to be rebuilding the home from the foundation up.
Get a moisture and termite inspection ALWAYS. My biggest advice for anyone buying a home with a crawl is get someone to view the underneath. Ensure its going to be an aggressive inspection and ask for them to look at every inch. I have had “missed” damage in the past. Its not a good feeling to find that out after the sale.
Review the reports with Qualified contractors. Examine all aspects of the report or ask to take the contractors back to the house for estimates. If you can have each trade come to the inspection and take care of that at one time.
So your going to do all the repairs your self. Good luck on that, I hear this all the time about how handy someone is and they can do it all. I hate to tell you this but 90% of the time its not going to be something you can do and get the results of a professional.
If your planning on rehabbing and flipping homes then partner with the right people first so your investment is top notch and you can get top dollar when finished.