House price trends are some of the most influential factors in real estate investing. With the most recent national median property price of $312,800, investors are searching for cheap real estate properties all over the country. How can real estate investors easily find affordable houses for sale for real estate investment? Here are 8 ways:
Related: Here Are the 10 Most Affordable Real Estate Markets for 2019
Look for “For Sale by Owner” Signs
Finding affordable houses for sale doesn’t have to be unnecessarily complicated. Sometimes, by simply driving down the street in your neighborhood or area, you can learn of cheap real estate properties. “For Sale by Owner” properties can sometimes yield the most profitable investments and the most inexpensive investment opportunities. This is because homeowners who sell their homes without the help of a real estate agent may not know the true value of their home.
Consider Out-of-State Real Estate Investing
As any real estate investor knows, the three most important things when investing in real estate are location, location, and location. By this principle, investing in real estate does not need to be limited to one’s location. An out-of-state opportunity can yield a below market value and affordable real estate investment. Out-of-state locations may be beyond an urban, suburban, or rural area. Or, as the name suggests, they may be outside of one’s state. They can even extend past regions, such as the East and West Coasts. The South and Midwest, for instance, are well-known for their affordable real estate markets.
Related: 20 Cheapest States to Buy a House for Investment in 2019
Work with a Real Estate Agent
Another efficient method to find affordable houses for sale for investment purposes is to hire a real estate agent. A real estate agent is a qualified and experienced professional who is tasked with searching for investment properties for sale. Agents are equipped with connections and real estate investment tools, both of which allow them to find the ideal property for their clients.
Be sure to hire a real estate agent who has experience with investment properties, and not just residential homes for sale. To search for a real estate agent, check out Realtor.com, the official website of the National Association of Realtors, and Mashvisor’s list of licensed real estate agents.
Network with Real Estate Investors and Real Estate Wholesalers
Search for Foreclosed Homes for Sale
Purchasing foreclosed homes for sale is another way to find affordable real estate properties. Foreclosed homes are real estate properties in which the owner has failed to pay the property’s mortgage loan in due time. As a result, the property becomes a distressed property and is seized by the financing institution, usually a bank. The property may be sold in a foreclosure auction. If it doesn’t sell in the foreclosure auction, the lender will attempt to sell the property as quickly as possible. As a method to do so, they will sell the property below market value, making it a cheap property for sale.
Search for Short Sale Properties
Related to foreclosed homes for sale, short sale properties are another common source of affordable houses for sale. Short sale properties are often considered synonymous with foreclosed properties, but they are not the same thing. Instead of the lender selling the property, as in the case of a foreclosure, the lender forgives the remaining balance of the mortgage and allows the owner to sell the residential or investment property. In some cases, doing so is considered a better option than foreclosure for both the owner and the lender. As a result, short sale properties are sold below market value and are very inexpensive.
Search for Real Estate Owned (REO) Properties
As part of the foreclosure process, distressed properties are repossessed by the lender, typically a bank. These properties are called bank-owned homes or real estate owned (REO) properties and are great as affordable houses for sale. Instead of being auctioned in a foreclosure auction, the lender lists these properties on the MSL or on their website. An interested buyer can then strike a real estate deal and purchase these below market value investment properties.
Use Mashvisor’s Tools
Of all the methods to find affordable houses for sale for investment goals, using Mashvisor’s real estate investment tools is the best, by far. There are two main tools that help investors with buying a cheap house for investment: Mashvisor’s real estate heatmap analysis and its property marketplace.
Related: Mashvisor: A Real Estate Investing Tool for All Your Investment Needs
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Mashvisor’s Real Estate Heatmap Analysis
The precursor to an affordable real estate property is an affordable real estate location. With Mashvisor’s real estate heatmap analysis, investors can scour the US for cheap investment locations. The heatmap is interactive, allowing real estate investors to search for properties that are not only within their budget, but that are profitable as well. Once the investor has settled for a location of interest, he/she can search for investment properties in the area that fit their investment goals using other property filters.
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Mashvisor’s Property Marketplace
The Mashvisor Property Marketplace also helps investors find affordable houses for sale. The Marketplace provides investors with lists of foreclosed homes for sale, short sale properties, bank-owned homes, and other off-market properties in a selected area.
With these two Mashvisor tools, real estate investors will find the most affordable and most profitable investment properties in any US location! Want to learn more about the tools, as well as the platform’s Airbnb analytics feature? Then, click here!
Now that you know the various ways to find affordable houses for sale for real estate investment, it’s time to put some of what you’ve learned into practice! Want to use Mashvisor’s real estate heatmap and the Mashvisor Property Marketplace to scour for the most affordable and most profitable investments in your area? Of course, you do! CLICK HERE to start your FREE 14-day trial with Mashvisor!