A great way to bring in additional income throughout the year is by hosting a short-term rental property. The business has been booming with individuals wanting to travel more than ever. Hosting a rental property can bring in consistent income and help make a return on your hard-earned investment in purchasing a home. There are quite a few different ways to purchase a home that will be intended to be used as a short-term rental; this includes purchasing a foreclosed home. Purchasing this kind of home has a variety of benefits that will help you in the long run when you are looking to own a short-term rental property. Check out the benefits below:
Lower Sale Price
A foreclosed home is a home that has been repossessed by a mortgage lender or bank. The homes are often sold at auctions or another bidding service. Finding these homes can be difficult, but once you do, you will be happy to see some of the benefits of purchasing a foreclosed home. The big benefit is finding the home at a cheaper price. Mortgage lenders and banks often want to recoup their investment as quickly as possible and not hold onto the properties for lengthy periods of time. This will cause them to sell the homes at a fraction of what they are currently worth. This is where you are able to purchase the home at a great price, providing you with a lower risk investment in the home.
Purchase Below Market Value
As stated, you will often find foreclosed homes at a fraction of their original price many of which will be below market value. If you have noticed the housing trends over the past few years you will notice that the value of homes continues to rise significantly. When you purchase a home below market value you are able to build equity much faster. This makes your purchase a great investment along with being cheaper to set up for short-term rental use.
Blank Space for Your Rental
One of the many conditions that are listed when you purchase a foreclosed home is that the property will be sold as is. This may scare off some homebuyers who may be afraid that the property does not have what is required for them. However, this is a great feature for short-term rental owners who need a blank canvas to set up their vacation rental. Successful short-term rental properties are not your cookie cutter house, but instead an individualized home that offers a spark of life. You will find that adding a little flair into your home will generate interest quicker. Foreclosed homes can come with the bare necessities, but that is all you need, especially if you plan on adding more features in yourself. If you plan on redoing a kitchen or bathrooms, a foreclosed home is a no brainer for you. There may be less to remove from the home and make it easier to simply bring in items and décor. You can easily see past a potential concern and instead see the benefits of this.
Condition and Title Info
Another great benefit of purchasing a foreclosed home is finding out the property’s condition. Part of the process in foreclosing a home is that the seller must provide a complete history of property. This includes any information regarding the condition of the home along with the title. Finding out this information can be a quick and easy online search. Having this information up front will help you to know what needs maintenance on the property and make sure the property is up to code. You will have much more knowledge when purchasing a foreclosed home than entering the buying process of a regular home.
Financial Flexibility
Purchasing a home is now more expensive than ever with the recent market trends. This can make it difficult on your finances if you do not plan in advance for such a purchase. While you are most likely in a position for financial freedom you will rest easy knowing there is also financial flexibility when purchasing a foreclosed home. These homes allow your stand mortgage financing in addition to flexible options that can be provided by the seller. Some situations will encourage a seller to work out different options for the buyer to make the process quick on both ends. Having flexibility in purchasing a home is always welcome news.
Make the Most of Your Short-Term Rental
Foreclosed homes are just one of many different options for your short-term rental buying power. Make the most of your property by utilizing our property management services to keep the home in top shape and provide consistent support to book it out as frequently as possible. You will not find a better property service company than us.
