Investing in foreclosed duplex?

Question

It's 4 unit each with 1 bed/bath and it is in terrible condition. I'm going to have to install everything and paint the walls etc. Do you think I'm making a good investment? I'm going to down pay about 50%.

Answer 1

You don't provide enough information.

The down payment really does not matter, but it would effect your payment and cash flow.

The way you look at it.

Sale price - costs = profit.  The only question is profit higher or lower than your requirements.

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Answer 2

It might be a good investement if the future rates of the area gets agood hike.

Answer 3

hello,

Investment is worth only when there is a possibility of price appreciation in future. If the renovation cost of the house is very high then i think you should closely examine the other aspects too like:

1.  Area and locality of the house.

2. land cost.

3. Prices of other house in same locality.

4. Taxes and other legislation fees.

Now after examining these factors if you find the cost of house could be recovered in the following years then its a "Good" investment.

Answer 4

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