Finding Cheap Single Family Homes

As an investor, especially a real estate investor, you want to get property that will provide you with the highest cash flow and best ROI (return on investment) possible. Some investors go for apartment complexes whiles others go for single family dwellings. If you are the type that is new to the arena and want to get your feet wet, the best way is with single family-owned homes. Depending on your investment strategy, you may wish to invest in single family properties to either flip the property, live in it yourself, or as a source of cash flow by renting it out to someone else.

The only thing with finding this type of real estate is the high prices you may find. Because real estate prices have skyrocketed in recent years, the price of a single family-owned home may be higher than you want to pay. However, there is a way out. You can actually find single family-owned properties cheap. Yes, you can practically get one that is a steal. How is this possible?

There are actually many ways you can get single family-owned homes. If you do some research and careful digging, you can come up with a few resources. Here are some resources you can try that have produced leads for other real estate investors:

o Fixer-uppers – One way to find a cheap single family type property is by contacting local construction companies. Investors don’t realize that construction companies work closely with real estate agencies, sellers, and even the city or town where you live. They have friends in places you wouldn’t be able to contact. They can find out about what properties are being sold, or about to be sold, and where the properties are located. Don’t be afraid to stop and ask the manager of a construction site if he knows anything. Just tell him you are a real estate investor, and he will be more than willing to share what he knows.

o Foreclosures – Another way to find single family properties is by looking for foreclosures. Get a foreclosure list form a realtor or by going online, and look them up. There is even a website dedicated to foreclosures. This is the best and easiest way to find a single family-owned property cheap. You can actually find some properties a penny on the dollar practically. All you do in many cases is just pay off the back due mortgage.

o Tax liens – Here is a way that some investors get involved with when it comes to real estate. They usually get a tax lien list from the tax department in the tax office of the local or county government. You also may find these listings published in the Sunday newspaper. Many types of properties are listed. Just make sure the one you want is a single family-owned property. In some circumstances you may find you may pay only $500 or less for the property.

o HUD – Don’t forget to look at HUD. They have ways to help finance your first home, but they usually have lists of single-family-owned homes that are cheaper than you would find by going through a realtor.

o Bank auctions – When looking for your next single family property, why not go to bank auctions. Many investors have gone to these and made a killing. But before you go to one, do your homework. Check the homes that are up for auction ahead of time and find out the market value of the houses and the taxes in the area, etc. By knowing these facts, you will save yourself a lot of money and time, by only bidding the price that is just below the market value. This way you won’t find yourself spending more than what the property is really worth.

o Distressed homes – Anther way you can find a single family-owned property is simply by driving down the street in either your neighborhood or another. Find a home that is really junkie. Look to see if there are any jacked-up cars in the driveway, spilled oil or garbage lying around, dead or overgrown lawns, and an obvious sign of neglect. Also check the neighborhood. How close is it to stores and perhaps a nearby bus lines. These types of neighborhoods are low income type residents. As such, they are willing to sell their property dirt cheap just to get out of those conditions.

Finding a cheap single family-owned property is not really all that hard if you know where to look. Hopefully the information contained in this article will provide some ideas as to where to look for them.