Real Estate Investment Advice for Buyers: Rehab Properties in the Panama City Area
With all the cable TV shows on this subject, it is very trendy to think that the best profits are to be made from rehabbing a real estate property. This may be true but, without experience, this type of investment can be very risky.
First, let's consider a typical property offered as a rehab. Let's say the average selling price for a property in the area is $250,000. When you purchase the property, you will probably have to pay closing costs of about 3%. Just new carpet and paint will cost about another 3%. When you sell the property, you'll have another 6% closing costs. Based upon these costs, you will have to buy the property for $215,00 just to break even. Unfortunately, not many sellers will drop their price by $35,000 just because the house needs a new carpet and a paint job.
So our advice is to stay away from this type of investment unless you have good experience in home repair and have the expertise to do it yourself, or know local contractors who will be able to do the work and allow you to realize a profit from your investment.
If you have experience and still want to consider rehabbing a real estate property in the Panama City area, then our team can certainly help you find a suitable property.
Click this link if you are interested in rehab real estate investments in Panama City, Panama City Beach or Destin Florida
