Hi Mike,

One other thing to consider... some condos are not eligible for FHA financing because there are not sufficient numbers of owner-occupants and other factors. For that reason... I would recommend finding a single family home if you may ultimately want to sell for a profit.

Also for Fannie Mae owned foreclosed homes, certain properties are eligible for special financing that will allow an investor to put only 10% down to purchase. This may enable you to buy more than one investment property to take advantage of the leverage.

To answer your question about whether or not to go after a bank-owned verus a pre-foreclosure.... I'm seeing bank-owned as better bargains. The "ficticious" asking price of pre-foreclosure properties is normally not an approved price the lender would allow it to sell for. If you're looking at an "asking price" on a short sale, unless it is "approved" it may be meaningless. It may be in the "ballpark" but I've seen many that are unrealistically low just to submit an offer to a lender to find out what the "real" approved price is!

Your best bet is to get with an active Realtor in the area you want to buy and then go after bank owned properties. You will have to be ready to make an offer within a few days of listing so I'm not sure how that would work considering you're in NJ.

Hope this helps.

All my best,

Alma
Alma Rose Kee, P.A.
Real Estate Consultant
Charles Rutenberg Realty, Inc.
813.244.9898 http://www.SoldOnTampa.com

Hi, Mike. The answers have been pretty comprehensive so far. In addition to the importance of your plans for usage, openness to fixing (up) a property and your expectations and goals regarding this purchase, let me just share with you my current experiences. Single family homes are still in higher demand (for resale) than condos, except in specialty markets and highly desirable locations, like beach property, 55+, etc. Condos are easier to own for an absentee owner, unless you use a property management company. We do have one in-house at my office. As far as short sale (or pre-forclosure) vs bank owned, bank owned has become the property of choice, thereby creating heated competition for properties in good condition or in great locations. So the idea of offering a bank 30% less than asking is not working anymore. As a matter of fact, multiple offers are driving up prices even above list price in some cases. Short sales are beginning to emerge as the better potential for a great buy, but they can be very messy and time consuming. You really need to have an agent who will stay on top of things and advise you well.

I hope this helps. I am currently working with various buyers like you and would be happy to assist you further. Best of luck in your search.
Rachel Friesema
Prudential Tropical Realty
727-481-4757

Hi Mike,

20% down and you qualify for a rate of 4.75% pn a second home!! With property values and interest rates at historic lows, its a great time to buy!

Let me know if you would like to run some numbers

Ryan Brandenburger
954-394-9005

Hi Mike,

There are great investment opportunities in every area of the Florida housing market, single family, condo, villa, etc. It's a matter of selecting the right market area for the type of home you are seeking.

North Port, Port Charlotte, Punta Gorda are all locations where buyers are benefitting from huge savings on single family homes. Venice has a good number of condo opportunities and is very close the popular beaches. There is plenty newer construction to choose from in these locations with prices in the mid $100,000.

Good luck with your search.
Best regards,
The Eckler Team
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363

Hi Mike. Good move choosing the West Coast of Florida for a second home. In Pinellas County you're near the water no matter where you live. The inventory of available homes (especially condos) is very high and prices are deflated mainly thanks to short sales and bank owned properties. The best investment would be a property which is undervalued compared to other homes in the neighborhood. It's all about location, price and condition. If I can be of help in your search for an undervalued second home in a great Pinellas County neighborhood, please feel free to call me direct at (727) 541-3743.

Darla Schroeder, Realtor, GRI, e-PRO
Century 21 Real Estate Champions
4350 Duhme Road
Madeira Beach, FL 33708
Office Toll Free (800) 866-6032
darla.schroeder@century21.com

MIke, the Clearwater, Dunedin and Palm Harbor area offers a very diverse selection of homes. Residents here benefit tremendously through the Pennies for Pinellas programs that continuously improves the quality of life elements in this area. A major focus has been consistantly acquiring community waterfront properties to expand the citizens access to our splendid water front.
The market is certainly right for acquiring property. The questions I would present you with are:
Do you intend to live in this home eventually?
If yes, tell me a little about your lifestyle. Very atheletic, weekend sportsman, arts and resturants, boater, activist, thespian?
What is your threshold to fixing up a well located and constructed property?
Are you willing to take risk of acquiring a condo, townhome, villa with the potential of accessment or rising monthly maintainence cost to adjust for delinquencies?
There are additional important question about your goals and preferences that would enable identifying the perfect property for you.
Give a call when your ready to reveiew the opportunities.
Annette Lawrence, REMAX ACR Elite Group
727.709.1452
Find more about these neighborhoods at: http://www.MyDunedin.com

Mike,

Great question, and the answers are all going to depend on your plans with the second home. For example, will this be strictly a second home for yourself or do you plan on renting the property out. If you plan on using it strictly as a second home for yourself, how much time will you be spending at the property. If you plan on renting it out, are you looking for long term rental or short term rental. Next, are you looking for something with a water view or just something in the Clearwater area. Now for the obvious, with a condo you won't have to worry maintance of the as much as you would with a single family home. Also, most of your condo associations will include insurance for the exterior of the building whereas a single family home you will have to provide the insurance yourself. Also another option to consider is a town house, where you can sometimes have the best of both a condo and a single family residence. I have worked with many, like yourself who have purchased a second home as an investment do to the drastic drop in home prices. I would be gald to answer any questions you may have and discuss with you some of the pros and cons of each so that you are able to decide which is best for your situation. Please feel free to contact me directly either by e-mail or phone.

Michael McCullough, P.A.
Charles Rutenberg Realty, Inc.
(727)631-5050
michael@mcculloughpa.com

Great Advice Howard! Thank You!!

As an investor, I would want to find the property with the most return for my money. Whether the return is financial or aesthetic depends on your goals. The first element of importance would be purchasing a home that is priced correctly. Your realtor can help you make that determination. The second element to consider is what will it be worth to me in the future.