Foreclosure in West Chester Boro for $170,000

I recently toured a foreclosure that just hit the market.  It’s a great price at $170,000 and is located in the borough of West Chester with a good sized yard and a one car garage in the alley.  Like most foreclosures, it needs a lot of work but it is a great location just a few 20130919-165943.jpgblocks to all of the shops and restaurants in the boro.

This is a great deal for homebuyers who are willing to do some work to fix up a house and it has a great lending program attached to it.  It is a government foreclosure from Fannie Mae & for owner occupants they offer 3% down loans and they waive the mortgage insurance associated with most low money down loans.  On a $170,000 loan that will save you a lot of money up front and on your monthly costs.  The other advantage to Fannie Mae foreclosures is they offer a Homepath renovation mortgage on some properties and this is one of them.  As long as you qualify, you are able to borrow and finance the amount needed to fix up the property all in one loan.  The renovation mortgage is offered to not only owner occupants but investors as well.  You can check out other Fannie Mae properties and get more information about their loans at www.homepath.com.

Call me if you are interested in seeing this property.  Check out more pictures below.

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Is now a good time to flip houses?

Home flippers made an average gross profit of $18,400 on single-family home flips, representing a 9 percent return on the initial purchase prices

Interesting article here about the increase of investors and first time investors.  If you consider that 50% of buyers in today’s market buy with cash (see here) and that banks & our government are keeping their foreclosures on their books and not releasing them for sale (see here) I think now is a great time to get into real estate investing.

With the increase of investors it is harder to low ball and get good deals but we have a stable market in this area with inventory levels at 6 months and a low inventory of fixed up homes so it will be easier to sell and sell quickly once a house is fixed up.  Of course, you need to control your labor and material costs on your flips but a 9% return for a 4-5 month flip seems reasonable.  Also, as foreclosures are released for sale by the banks and our government there will be more supply and flippers will be able to get better deals on the buy.

If you are interested in finding great deals in Chester, Delaware and Montgomery counties give me a call at 484-985-5222.