Home Buying in 20003>Question Details

Great Spaces…, Real Estate Pro in Pawcatuck, CT

Where are the great real estate deals in 2011? I'm looking for east coast rental property or land that's good value & low tax NC, RI,

Asked by Great Spaces CT, Pawcatuck, CT Tue Feb 22, 2011


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Mr Bissett,

Just a few comments;
First, I'm an agent in DC. The reason the "bubble" didn't really burst in DC like it did elsewhere is because we are one of the only areas in the country that has had with steady job growth the whole time. Also in DC proper properties were significantly undervalued for a very long time. As the market was going nuts all over the country (including here) DC was going through some pretty radical changes and neighborhoods that were plagued by blight have undergone major realizations and seen millions contributed to them through major developments. What this means for an investor is that while you will not get much for your money here relative to other areas the rents you would receive are much higher and the vacancy is much lower. Many of the apartments that I manage have not seen more than a week of vacancy in many years. There are a few where the investor has never had a vacancy.

I've looked at purchasing beach property a few times. I love the idea of owning a place at the ocean. The thing that always stops me is the management fees and the near promise of 3-5 months of vacancy. Beach property seems to be a good long term investment, but there are pretty big fees that eat up your return in the short term. What Deborah says below about being close to your investment is important to consider. It's impossible to put a number on that. I know nothing about the real estate in Waverly or Bay St Louis Mississippi, but If I lived in Alabama I'd at least check into it. If I were going to buy beach property it would be in Hatteras or Salvo which are communities where Tim who also commented is because it's where I vacation, it's near where I grew up, and I can get there in about 5 hours if there was an emergency. I think that area on the Outer Banks is interesting. seem to me there is room for equity growth as development increases there.
1 vote Thank Flag Link Tue Mar 1, 2011
Mr. Bissett I own investment property in SC and in NC. RIght now there are some great foreclosures and short sales but not all are great investments. Just as the previous responders stated it needs to be a location that you will be able to manage. In SC I have had poor management experience as well as some good but I am able to visit my properties within a 3.5 hour drive fairly often so that helps me to stay on top of my investments. My sister made a couple of purchases on the NC coast and she is pleased with her purchases. Just realize on the coast it will likely be summer rentals and the fees and taxes may outweigh the mortgage and investment return and it may be a while before the property appreciates.

Good Luck with your choice.
Deborah Rigsbee Miller, Real Estate Broker
Coldwell Banker HPW
0 votes Thank Flag Link Tue Feb 22, 2011
Wow, thanks for responses...this is my first time posting on Trulia. Not sure where best website to discuss and get info. I have a home in Huntsville AL I used to live in, now I rent out. Its pretty solid so not too bad with repairs. I have cash I would invest if I felt confident I wouldn't lose the $$. My sibling attends college in Newport, RI and I was thinking of looking for a rental there she could rent from me with her friends instead of her paying someone else $500/mo for a room... I have 3 acres in eastern CT, but pay almost $2k/yr in taxes...and its just woods! I was thinking of land down south maybe near Asheville, Boone NC or a beach I guess...i just don't know where solid deals are when I'm spending cash...bank loans aren't so bad if the investment falters a little...I am renting now, so looking to get another mortgage since the rates are so good. I just don't want to buy near DC...costs remain high, they never let up with the rest of the housing bubble
0 votes Thank Flag Link Tue Feb 22, 2011
Look for Trustee Sales, in my opinion, best deals out there. Course, you may have to buy sight unseen and you will need to pay for them, CASH within 24 hours. However, those that are still brave enough to "flip" in this market, that is how they are doing it.

Google Trustee Sale and check them out, best of luck.
0 votes Thank Flag Link Tue Feb 22, 2011
There's great deals throughout the east coast but it's important that you look at all the numbers in the situation. It's a good idea to own property that is near to where you will be. You might purchase something for a great price but if it's far away from you ownership will be more difficult.

Everything from fixing it up if it needs some repair to managing it from far is harder when you've got extra costs. Make sure you take this into consideration when doing your cost estimates. If the property is nearby, anytime there is a problem, you won't be too far away to take care of it.
0 votes Thank Flag Link Tue Feb 22, 2011
In North Carolina on the eastern shore (called the Outer Banks) we are mostly vacation rental homes and investment homes. In the months of May to Oct the tourists flock here with family and friends to rent the 3 to 10+ bedroom homes. The oceanfront homes have dropped in price by 40% in the past 3 years and with interest rates at historic lows the cash flows are looking better than they have in 10 years. Rental income is up, prices and interest rates are down, this makes it a great time to be a buyer. Spring is the peak selling season here, buyers want to be the owner by may when the rental income starts pouring in. There are some Bank owned homes and owners owned homes for sale all along the 100 miles of shoreline. Prices are in the $300k to 3+ million and up.

Feel free to contact me anytime I can be of service.

Tim Moore
Lamb Realty
Kitty Hawk, NC
(o) 252-261-7724
800-552-6257 ext 234
0 votes Thank Flag Link Tue Feb 22, 2011
Right now, FL has a huge supply, townhomes & condos are especially cheap (at least in the Jacksonville area) However, the market is pretty stagnant right now due to the mess that the banks are in so they are taking things pretty slow and making certain their paperwork is correct prior to foreclosure. I do alot of work for BAC and last year was doing anywhere from 60-80 a month, January I only did 52 and this month, so far, I have only done 21 (by that I mean put a price on their foreclosure/pre-foreclosure properties). Once the banks get all their paper work straightened out and find all the loopholes, there will be another round of foreclosures and another drop in property values before pricing begins to climb back out of the hole. Just to give you an idea, 1 home I did started out at 1.2 mil, the first time I priced it it went to 750, 2nd time 500, finally sold for 350, this home was the model home for a large golf club community and the parade of homes winner in 2005. Additionally, right now you can get a 3/2 condo for about 60-70,000 and a 1 or 2/2 for about 30,000, in some cases even less, there are numerous homes/condos/townhomes on the market here under the $30000 mark, just did a quadraprex that ran under $30,000, yes that right, under 30. Of course it needed a little help, but hell, 4 units! On top of that, if you have cash, the banks are really willing to deal to get it off of their books. And if you are worried about hurricanes, don't, this area hasn't been affected by a hurricane since Dora in the 60s and even then it wasn't much more than a good storm because of Jacksonville's physical location, storms generally cross the ocean to hit the Carolinas.
0 votes Thank Flag Link Tue Feb 22, 2011
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