Buying a foreclosed property for the purposes of renting can be profitable, but this is as easy as it seems, there are works involved to make sure you are getting a decent deal, bring the home up to standard before renting it out.
First and foremost, you should find out more about the area in which the foreclosed property is sitting on.
Always make sure to check the types of homes in the area, schools and amenities as this is a strong consideration for potential to rent your place.
A quick tip would be to look through the local papers for comparable rentals to see what the going rate would be.
When you are looking for foreclosed homes, check for those that are going to auction - often times these can be the source of a great deal.
Be prepared to buy a property without an inspection as this is quite common with foreclosed homes.
It is often a safer options to use a real estate agent to look for a home that is fully bank owned and is on the regular property market.
This will give you the opportunity to inspect the home before purchase.
Using a real estate agent can help walk you through the entire process of searching for a home, home inspection and purchasing the home.
Real estate agents have listings of foreclosed homes and those that are up for auction in the area you wish to buy from.
One of the main benefits is that they can help negotiate a good deal for you and secure a better mortgage.
You should always have your financing in place before you commit to a purchase.
It is also a good idea to have a reserve fund in place to cover the mortgage payments if you initially have difficulty finding a tenant.
You can list your rental in the paper or with the MLS system which gets plenty of people searching through it every day.
Set a price that is in line with the local market.
Apartment buildings tend to rent for less than a home does, so you may need to throw in some extras to gain a reputable renter.