Renting them until they are ripe and seasoned has been an old practice of developers building rental apartments in mind of future conversions to condominiums. Timing is important Cost of acquisition vital.Renovation necessary but with caution to realistic expectations of foreseeable market conditions and always positive returns.
As a broker and investor I practice what I preach. My motherâ€™s expression comes always to mind. Be careful the soup could cost you as much as the meat. I share your interest and my instincts prove to be my best guide not the inventory nor what others may say. I bought and will continue to buy within limitation of my capacity which is always limited to funds not on ambition or predictions of others. I buy property that needs limited amount of repairs with greater interest of creating immediate profit not immediate expense.
I am not familiar with your area as I am from Greater Orlando area in Florida, but it has been said that the current inventory nation wide is enough to last about 2 years not considering what is known as shadow inventory.
Shadow inventory refers to homes that are in danger of foreclosure and/or REOs (also known as bank owned) that are held back and have yet to be put in the Market.
That been said, there are amazing opportunities in this Market and with proper planning and financials in place, an Investor such as you could in fact make good profits.
Every Market is different and I suggest you hire an experienced Real Estate Professional that specialize in Distressed Properties and/or representing Investors as well an aggressive Listing Agent that could coordinate the sale of your properties quickly and for the best possible price.
When hiring a Realtor, you should interview at least 3 Agents and request a free Comparative Market Analysis for proposed properties that may be offered to you, both for the buying and selling process, once the property is rehabilitated . Be sure to prepare a set of questions for each Agent, listen closely to their presentation and hire the one that better suit your needs.
Good luck in your venture, I hope I was able to answer your question but fell free to contact me,
Adriana Escoto, Realtor
219 Citrus Tower Blvd
Clermont, FL 34711 USA