Common Sense Good Deal Checklist for Your Property Purchases
When thinking about purchasing a Tax Lien or Deed on a property, after all of the numbers have been crunched, expert opinion(s) weighed, and that final gut check is done, it is important to have a “Common Sense Good Deal Checklist” to rely on. If you answer no to one or two of the questions below, then carefully reconsider purchasing your target property. If you answer no to three or more of these questions you may want to run in the other direction. As a beginner, you should leave it for someone willing to take a large risk. As an alternative, perhaps you can sell your contract to an experienced rehabber with different needs or goals. Get in, get out and get paid.
Here’s the checklist:
- Would I (or my family) feel safe there at night?
- Does the house fit in with others in the neighborhood?
- Is the house in a residential neighborhood (one with more houses than businesses or apartments)?
- Is the house worth saving?
- Would the house conform to FHA lending guidelines after renovations?
- Is the purchase price at twenty five percent less than similar homes have sold for in the neighborhood?
- Could I complete renovations in less than two months?
- Could I pay someone less than $25,000 to bring it up to satisfactory condition?
- Is the average property listed for sale in the area selling in fewer than ninety days?
- Would the house make a good starter home for a family?
- Is the block free of boarded up houses?
- Can I fully inspect the property prior to closing?
- Does the owner have the ability to deliver a clean title of ownership?