Home Buying in 01748>Question Details

Mo1234, Home Seller in Lancaster, TX

How much do you think an investor would pay for a home valued at 65000?

Asked by Mo1234, Lancaster, TX Tue Aug 17, 2010

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5
Jennifer Erickson’s answer
For an investor it will depend on the income that can be earned on the property. Sq. Ft., bedroom count, condition will all play a factor. Mostly what matters is the return on investment -- cash flow. Let me know if I can be of any further help, investment property is one of my specialties. Best,

Eric
0 votes Thank Flag Link Tue Aug 17, 2010
As noted below, an investor would pay a price that would enable him/her to achieve their financial goals. Fix and Flip, condo-conversion, buy-rent-and-hold, are all different strategies that use different criteria to come up with rates of return and acceptable entry points (purchase prices). So if you have a home at 65K that is so banged up that it can only be rented at $100 a month, an investor would pass, or bid less. If he felt the target income was $1000/month, he wouldn't hesitate to pay list (but would likely have to pay more).
0 votes Thank Flag Link Thu Aug 19, 2010
This cant be answered without knowing more.
If it is a fix and flip, you need to know what $$ you will need to get it market ready and what will it sell for when completed.
If renting, you need to know what rents are in the area for similar home.
Not sure what you mean by value. Usually value = price. That is how values are determined.
0 votes Thank Flag Link Tue Aug 17, 2010
you say home, so I will assume its a single family. an investor would most likely buy a $650k home as a fix n' flip. At this price point it probably does not make sense as a rental property. there are many variables and more info. is needed- age, condition, etc.
Assuming the $650k value you give is for a home in reasonable condition, it would probably be in the 80% range, so $520,000. An investors profile is finding homes that need a little work, spruce them up and sell again.
just carrying costs 2% and realtor commission 5% will be 7%.
0 votes Thank Flag Link Tue Aug 17, 2010
The answer is: What will the property bring in as far as cash flow - Based on that answer the property can them be given an investors interest or value to him or her.

I hope that typed out right...............if you need anything at all just ask

J Jones
Century 21 Northshore
978-335-9092
0 votes Thank Flag Link Tue Aug 17, 2010
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