what are the houses investors like to invest in?

stressed, secured, or low price, high priced houses. what kind of property do investors like?
In Buying Property - Asked by Brian W. - Mar 20, 2012
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Answer(s)

Alex J.
Broker/Agent
Plano, TX

Typically, house investors like to invest in 'starter homes'. Starter homes can be called 3/2 homes which means they have 3 bedrooms and 2 bathrooms.

Mar 21, 2012
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RJ D.
Lender/Mortgage Broker
New York, NY

Houses are quality of life purchases, not usually prudent investments, especially if there is a mortgage involved. To wisely invest in a house, the following variables should be considered
1. Investor should purchase and rehabilitate using all cash, no mortgage. Margins on "houses" are usually slim. A mortgage further reduces the margin and adds pressure because of making payments or having to pay back the mortgage in full in a short period of time. So if you need a mortgage to invest in a "house", Its a bad deal.
2. If there is no mortgage involved then a house may be a worthwhile investment. If you can buy, rehab and maintain the house using your cash, it will be profitable.
3. The house you invest in must be bought significantly below market value. This way if it a flip, there will be plenty of room to make a profit.

Mar 22, 2012
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Charlie A.
Broker/Agent
Port Townsend, WA

Investors that I have worked with in the residential field like to purchase homes that are rentable with very little repairs. They find cap rates of 6+% to be adequate. the gamble is that the residential market improves and the real money is made at the sale in 4-5 years.

Mar 24, 2012
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