emirate25 Posted October 6, 2008 Share Posted October 6, 2008 I found a foreclosure WAY undervalued and I am thinking about bidding on it. Quote Link to comment Share on other sites More sharing options...
TJones Posted October 6, 2008 Share Posted October 6, 2008 If you have the money and the credit, wait about 2 more months, You will find a MEGA bargain come Xmas time. Quote Link to comment Share on other sites More sharing options...
emirate25 Posted October 6, 2008 Author Share Posted October 6, 2008 I hear you...but this property is like 40k undervalued...I have a little money and good credit. Quote Link to comment Share on other sites More sharing options...
Karick42 Posted October 6, 2008 Share Posted October 6, 2008 My wife and I are doing the same thing. We are looking into foreclosed properties in the Cypress & Katy areas. There are many available in the $60,000s and $70,000s. Most of them need some fixing up but they are extremely low priced.We are you looking at? Quote Link to comment Share on other sites More sharing options...
musicman Posted October 6, 2008 Share Posted October 6, 2008 people are definitely buying...esp forclosed properties. did some work for a broker over the ike days off and sales were going just fine. one that i was interested sold for 72k and the house was pretty well maintained. Quote Link to comment Share on other sites More sharing options...
crunchtastic Posted October 6, 2008 Share Posted October 6, 2008 I would consider a strategy like this if I were looking to buy an undervalued primary residence, or was looking to get into the slumlord business. Flipping, no way. If the flippers couldn't make it work when values were 40% higher, how can they expect to make it work now, when tight credit and mounting job losses equals even fewer buyers at any price? If you can pick them up so cheap that you can rent for under market rates, there's a money making opportunity, provided you own enough properties to make it worth your while. I'd bet there are going to be lots more people in the rental market as this recession drags on. Quote Link to comment Share on other sites More sharing options...
emirate25 Posted October 6, 2008 Author Share Posted October 6, 2008 I hear you...but this property is like 40k undervalued...I have a little money and good credit.In NW Houston (290) between the 610 and Beltway 8 area. Quote Link to comment Share on other sites More sharing options...
ricco67 Posted October 6, 2008 Share Posted October 6, 2008 If I had the liquid funds, I'd buy as a primary residence, but nothing appeals to me since I'm not in the market for a "House."Now if you were a bit more of a risk taker and you have enough cash, now would be the time to buy future rental properties or lots in proper areas for long term investing. Quote Link to comment Share on other sites More sharing options...
flipper Posted October 6, 2008 Share Posted October 6, 2008 I found a foreclosure WAY undervalued and I am thinking about bidding on it.$40,000 isn't necessarily WAY undervalued. Soft costs can suck up "equity" pretty quick. How much is the house? What do you think it's worth right now in it's best condition?flipperIf the flippers couldn't make it work when values were 40% higher, how can they expect to make it work now, when tight credit and mounting job losses equals even fewer buyers at any price?Are housing values down 40% across the board in Houston? I need to read the paper more.flipper Quote Link to comment Share on other sites More sharing options...
crunchtastic Posted October 6, 2008 Share Posted October 6, 2008 Are housing values down 40% across the board in Houston? I need to read the paper more.flipperI'm just picking numbers where I probably shouldn't. But my point is, whether it's 15% or 40%, prospective buyers' ability to get a mortgage is a game changer in ways it wasn't before. Quote Link to comment Share on other sites More sharing options...
TexasVines Posted October 7, 2008 Share Posted October 7, 2008 I would evaluate the property based on the worth of the materials that are used to construct itI would remove ANY value of the land since land in a subdivision is always over priced and since now that there is a house on it the actual land has no real worththere will be a time soon if not already that the cost of some homes may be so low that the value of the materials in it is equal to the value of what the home is selling forat that point I don't think the value of the home could go much lower because there will still be land cost and labor cost to fabricate those materials into a home for anyone that might want to buildI say this with the idea that the home is in ANY type of an area where any decent person may want to live.....because I do know in reality there are homes in places like detroit that probably have 30-40K in lumber and other materials in them (much less labor and land) and people will not buy them for 100 dollars because they are in a total ghetto and getting 30-40K worth of materials already in the form of a house for 100 dollars is not worth losing your life Quote Link to comment Share on other sites More sharing options...
infinite_jim Posted October 7, 2008 Share Posted October 7, 2008 (edited) edit:we will wait and see... Edited October 7, 2008 by infinite_jim Quote Link to comment Share on other sites More sharing options...
goastros Posted October 8, 2008 Share Posted October 8, 2008 I would only buy it if it was in a great location. I can't think of any great locations between 610 and the beltway on 290. Quote Link to comment Share on other sites More sharing options...
emirate25 Posted October 8, 2008 Author Share Posted October 8, 2008 I would only buy it if it was in a great location. I can't think of any great locations between 610 and the beltway on 290.what about oak forest area? Quote Link to comment Share on other sites More sharing options...
CHiPs Posted October 8, 2008 Share Posted October 8, 2008 what about oak forest area?or Oak Forest West? Quote Link to comment Share on other sites More sharing options...
jm1fd Posted October 8, 2008 Share Posted October 8, 2008 what about oak forest area?The Oak Forest AREA or Oak Forest? The AREA has some really nice spots (Garden Oaks) and some really bad spots (Pinemont Dr.). Quote Link to comment Share on other sites More sharing options...
HedwigTramp Posted October 14, 2008 Share Posted October 14, 2008 (edited) Absolutely... I am investing in this fire sale. But opportunities must be inside the loop and close to proposed rail lines. And to repeat the obvious..... it is LOCATION LOCATION LOCATION.Cheap is not necessarily a good deal.And it is interesting how the "Hot" areas have changed over the last 18 months. The 3rd Ward was hot as heck in early 2007. A tent on a 5000 sft lot would sell for 3 times the HCAD value. I looked at several houses where the criminals had stripped every bit of wire and pipe from an empty house. The 3rd ward has a lot of long term potential but some areas are VERY hard core (i.e. N of Elgin). During 2007 I bid and lost 4 "reasonably" priced properties in BAD 3rd ward neighborhoods (bidding full price on the 1st day on MLS). Asking Prices in the 3rd Ward have since dropped 20-50% and now the prices are more in line (or under) HCAD values. The near east end continues to gain momentum but there is very little available for the average investor (at a realistic price). I would avoid buying outside the beltway in lower-middle class neighborhoods unless you have a very sweet deal. There are lots of foreclosures in the Aldine & Alief areas, and the asking prices for foreclosures are dropping. Not a good sign.Currently, the Blue collar areas appear to be the best bet for landlords (Pasadena, Deer Park)I wish you good Luck with your investing! Edited October 14, 2008 by HedwigTramp Quote Link to comment Share on other sites More sharing options...
flipper Posted October 14, 2008 Share Posted October 14, 2008 And it is interesting how the "Hot" areas have changed over the last 18 months. The 3rd Ward was hot as heck in early 2007. A tent on a 5000 sft lot would sell for 3 times the HCAD value. I looked at several houses where the criminals had stripped every bit of wire and pipe from an empty house. The 3rd ward has a lot of long term potential but some areas are VERY hard core (i.e. N of Elgin). During 2007 I bid and lost 4 "reasonably" priced properties in BAD 3rd ward neighborhoods (bidding full price on the 1st day on MLS). Asking Prices in the 3rd Ward have since dropped 20-50% and now the prices are more in line (or under) HCAD values.This could be it's own thread. I'd argue that the 3rd ward was ever "hot" for anyone other than crooks committing mortgage fraud. That might be an overstatement, but not much of one.It will be a long time before Washington Terrace, Riverside Terrace etc. pick up any legit momentum.flipper Quote Link to comment Share on other sites More sharing options...
lcc179 Posted October 14, 2008 Share Posted October 14, 2008 What would you consider a "hot" area now? Just curious.Also, how do you think the higher priced communities inside the loop will fare with the current situation (i.e. Rice Military S of Wash/W of Shepherd)? My logic is that prices will not be affected too much because people with decent income can continue to get loans, thus, not really diminishing the prospective buyer count. But I could be wrong.. Quote Link to comment Share on other sites More sharing options...
travelguy_73 Posted October 14, 2008 Share Posted October 14, 2008 What would you consider a "hot" area now? Just curious.Also, how do you think the higher priced communities inside the loop will fare with the current situation (i.e. Rice Military S of Wash/W of Shepherd)? My logic is that prices will not be affected too much because people with decent income can continue to get loans, thus, not really diminishing the prospective buyer count. But I could be wrong..I think it will be a mixed bag. While you are correct that people with decent incomes can continue to get loans (at least let's assume this), the reality is that people with comfortable incomes are getting into trouble at a high enough rate to cause at least a hiccup in our market. Still have to have money down and not have a lot of other debt, which is something that was all-but-irrelevant pre-credit crisis.IMO, every segment and part of town is impacted, hot or not. So while prices might not materially decline, the inventory will rise as developers finish off existing projects (and seek financing for new ones) and then have to compete with existing homes for a smaller buyer pool. If that doesn't cause a decrease in prices across the board, then it will at least cause stagnation and some creative giveaways (free tvs and appliances) that will be a de facto price decrease. Quote Link to comment Share on other sites More sharing options...
jscarbor Posted October 15, 2008 Share Posted October 15, 2008 I think it will be a mixed bag. While you are correct that people with decent incomes can continue to get loans (at least let's assume this), the reality is that people with comfortable incomes are getting into trouble at a high enough rate to cause at least a hiccup in our market. Still have to have money down and not have a lot of other debt, which is something that was all-but-irrelevant pre-credit crisis.IMO, every segment and part of town is impacted, hot or not. So while prices might not materially decline, the inventory will rise as developers finish off existing projects (and seek financing for new ones) and then have to compete with existing homes for a smaller buyer pool. If that doesn't cause a decrease in prices across the board, then it will at least cause stagnation and some creative giveaways (free tvs and appliances) that will be a de facto price decrease.I can almost guarantee inventory will not rise because new homes are being built and brought into market. In fact, financing for builders is very difficult right now and I see there actually being a supply problem in mid- late 2009? Ask lumber stores if they are busy right now. Quote Link to comment Share on other sites More sharing options...
Rammer Posted October 15, 2008 Share Posted October 15, 2008 what about oak forest area?Oak Forest would be my FIRST choice.I specifically like the area west of T.C. Jester, but east of the railroad tracks.I woman told me that she had lived there 53 years and it had never flooded(a few homes east of T.C. Jester flooded in Ike). Don't get too close to Antoine.The problem with Garden Oaks is the single lane streets. The front yards are deceptively large - because the streets are so ridiculously narrow. Otherwise, it's a great spot. Quote Link to comment Share on other sites More sharing options...
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