It really doesn’t matter if it is section 8 or a HUD home, the buyer and seller can typically work out an agreement to purchase the property no matter what the scenario is. The best situation for both parties is to have a buyer come in with cash money. Typically a HUD homes is purchase using cash because it is so deeply discounted and usually needs some minor or major repairs. If this happens the buyer and seller or should we say tenant, may be interested in fixing up the home if the property is able to be repaired at minimal costs.
The repair will typically have to be done by the tenant if they are doing a lease option to buy. The lease transaction will usually require a little bit down payment and also some deposit to insure that the tenant is able to meet obligations. The down payment sometimes is used to recoup the amount of money the buyer had to put down before he/she purchase the property.
The fixing up of the home may range from 30 days and as much as 100 days depending on if it is structural damage.
Some may just go for a typical foreclosure property but for some you may see that all of those properties will typically need some type of repairs or work to bring it back to suitability for the average tenant.
Yes renting out a home for profit is a huge business, and we typically find that the rent to own clients usually work the hardest to keep the home in good shape versus someone that will only be there for a short period of time. As most know that values of home typically goes up and therefore the longer you hold a property the higher the likelihood of you making a larger profit even when adjusting for inflation.
Yet it truly is about ROI I mean most people may need the cash to do something beneficial and other may just want to take the profits and blow it at a casino or vacation.
We like to interview a lot of clients when they first come into our office so we can write down their goals so that way we can be on the same page. We learn to write this down on a sheet of paper, make a copy of it and let them know they can always change these goals at anytime. Yet we let them know according to their goals we will be focuses on helping them achieve these goals as a representative and we will provide daily and weekly updates as they may unfold. Some of the best way to keep them updated is by email or their favorite social media accounts.
Whatever your goals are you can rest assure that looking for a FHA or HUD program will be in your favor as these are typically the best programs in terms of credit low money down and property values.