Buying my first property, a foreclosure, should I hold or resell?

[Antonio Chelala]

Hello everyone,

I am extremely grateful to have found this great platform and a community like you all:)

I am new to real estate and rental property investing, and I am starting to run the numbers on listings to train myself to see if there is Cashflow. I am now in the phase of educating myself and reading books and joined this forum to gain knowledge before I invest in real estate.

My question to you guys today, is I found a property for foreclosure at this address 1811 E Lakeview, Benton AR. I still don't have a good estimate of the rental prices, Zillow is suggesting a number but I don't always rely on it.

If the renting out the property generates cashflow, then I will buy and hold.

If the property does not generate cashflow renting it out, would it be profitable to buy the property and resell it, since it is on foreclosure?

Thanks a lot

Best,

Antonio

[Billy Daniel]

Quote from @Antonio Chelala:

Quote from @Billy Daniel:

You'll have to analyze it for both scenarios.  It will likely go for more than they are asking as it looks like it's in decent shape.  It will probably cash flow at that price, but there could be some major repairs needed that don't show up in photos.  Do you have the ability to go see it in person?

Defintiely understandable, thanks for the advice! Would you recommend sending out inspectors and contractors? I am not located there, but if comes the time to buy, should I fly there and see it?

I always recommend out of town clients make the trip to see their property in person before buying.  A few hundred dollars for a trip is nothing compared to sinking 1000's in a bad property.  I would ask your realtor to help coordinate contractors and inspectors.  Ideally, they can be there at the same time.