Real Estate Investing Lessons: What to look for when negotiating a purchase on a repossessed home.

Hello everyone,

This is the first post in a series of posts I am going to write about my adventures in buying debt free 
repossessed homes as an investment. 

Recently, I found a steal in my local market and picked it up. What is a steal? In my opinion, this was a home that recently had an FHA loan and was repossessed. I was able to buy the home for 30% less than what was selling in the neighborhood. 
Moreover, I have one of the lowest priced homes in this neighborhood. 

The benefit of having the lowest priced home in the neighborhood is that my property's value is likely to increase based on the higher priced homes around me. Why is buying a FHA  repossessed home a benefit? That is because FHA has really strict guidelines on who they give loans to and the condition of the properties they give loans on. My newly purchased repossessed property has only been vacant for nine months, since this was recently an FHA mortgaged property what's the worse that could happen?

Well, as the video references below, vacant homes are subject to condensation. That is water my friends. In time, this condensation will turn into mold.  I didn't inspect for mold prior to buying the home because I figured the FHA loan guidelines were good enough for me. But nine months of a home sitting vacant will accumulate mold. Be warned. This isn't the worse thing in the world, but could have saved me thousands of dollars when negotiating a lower price. Learn from my mistakes!

I hope this post has helped you.

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