In our last post, we answered some basic questions about getting started with HUD homes. For the most part, those rules applied to those who want to be Owner-Occupants, which means you intend to own the home and live in the home. If you are an investor, you may be looking at making a bid on a HUD home in order to rehabilitate and resell the property or rent out the home.
When can an investor submit a bid?
When a HUD property is first listed for sale to the general public, bids can be submitted by all potential purchasers (including investors); however, it is available to Owner Occupant Purchasers only during the initial priority period. All bids placed by Owner Occupants that are submitted during this priority period are considered to have been received as though they were received simultanesouly. If there are no acceptable Owner Occupant bids on the last day of the priority period, then bidding becomes available to all purchasers on a daily basis, with no priority given to Owner Occupant bids.
Should I consider investing?
Right now may be a great time to consider investing in real estate in general, especially in single family rental properties. Rental income produced from residential properties increased 12 percent year-over-year in September 2012.
In addition, the inventory of foreclosed homes continues to decline, falling 16% since the peak in 2012. So, if you may be interested in investing in a foreclosure, now might be the time.
Overall, distressed sales accounted for 21% of all sales
For more information about investing, contact us at 206-588-8409 – we have investor specialists waiting to help you get started. We have years of experience with not only HUD properties, but all types of real estate investment opportunities.
*Graphs courtesy of CoreLogic