Cheap home Prices and Cash Deals around Atlanta Area? (Riverdale: extended stay, for sale)

[bensisco]

Hi everyone. I’ve noticed ads for a lot of low priced homes under $50,000 around the outer areas of Atlanta (e.g., Riverdale, Lithonia, Stone Mountain, etc.). So, I was wondering how difficult is it to buy a move-in ready, detached home in the $25K-$45K dollar range for cash. I realize most of these are short-sales and foreclosures and that there are a lot of investors to compete with; even though I would want to live in the house.

I currently live in Memphis (renting an apartment on a month to month lease) and was thinking about traveling to Atlanta to look at some apartments, homes, and neighborhoods. Also, any idea how long the buying process is taking on homes in this price range (from seeing a place, to closing) or the likelihood of success for an individual in that price range against the competition. Also, for the initial search, would staying in an extended stay hotel for a couple of weeks work or would it be better to lease an apartment? If I could find the right place, I could leave Atlanta until the closing was complete and return to move in. And finally, I see a number of condos for under $20k. How good would my chances be of buying a couple of move-in ready condos for $20K or less (each) to rent for income (assuming the HOAs allow renting)?

Thank you for your time and any advice you may offer.

[lorilove]

You should search for HUD home for sale. My understanding is that you can look at them on-line but when you actually get down to buying them, you will need a HUD approved real estate agent

[ATLTJL]

I can't remember who said it on here, someone pointed out how complex dealing with foreclosures is. Even if you get a realtor who specializes in them, the bottom line is that by the time you even see the listing, the guys who really know what they are doing with this stuff have already seen the property and passed on it.

When you're not a pro in the know, buying a foreclosure is really buying someone else's leftovers. You could get lucky, but I bet the search is long and frustrating.

[tamlym]

Originally Posted by bensisco

...buy a move-in ready, detached home in the $25K-$45K dollar range for cash.

It seems that there is a hot market right now for homes in that price range with small investors (like me) and large institutional investors....especially for move in ready/decent condition homes that we can rent out pretty fast. This has been my experience with Atlanta properties, but I would assume the market in the cities you mentioned might be similar. A lot of times, the homes get snatched up within days of being on market, so if you are out of state and buying to occupy, it may prove almost impossible for you even get an offer submitted because you probably want to schedule time to take a look, mull it over, and make a decision. By then, it's already pending.

Buying a foreclosure from a bank is not difficult (process if pretty straightforward) but like ATLTJL mentioned, if it's been listed for a while, it's already been passed over....probably for pricing issues, location issues, condition issues. Also, all of these sales are as is with no repairs so buyer beware.

If you are buying to live in it, definitely try going HUD as lorilove posted. A lot of the HUD homes are in better condition than general REOs and very importantly, they have owner occupied offer periods that lock out investor offers....so your chances of viewing the home and/or sending in an offer is a lot better.

Condos may prove easier to purchase as well, as investors find those harder to rent out due to leasing restrictions (while some may allow renting out, there may be a long waiting list....as an investor I wouldn't want to leave it vacant for years waiting to be allowed to lease it out)

Definitely come down, take a look around with a good realtor to get a feel for the area and type of property you want. Since you are out of state, you might want to have the agent go to view homes that interest you, take photos etc. Send your offer in with a due diligence period (normal 10 days?), and IF accepted, you can then personally view home and have it inspected prior to proceeding with the sale. It'll be less travelling for you and allow you a chance to back out if you change your mind.

Anyway, my 2 cents

[bensisco]

Thank you ALL so much for the helpful and thoughtful advice.

It sounds like I might have an exciting and frustrating time ahead if I decide to move forward with this idea.