During these harsh economic times, distressed real estate such as foreclosures and short sales are something we see a lot of today in the Downtown San Diego Real Estate market. Millions of American, during the last couple of years, have not been able to keep up with their mortgage payments and have therefore lost their homes. Out of 173 active Downtown San Diego Condos and Downtown San Diego Lofts, 32 are either foreclosures or short sales. Some of the lowest priced units on the market are distressed properties but be aware, they might not be in the best condition.
Inman News is in their recent real state article “A purchase strategy for distressed real estate” giving you some tips on how to handle investments of distressed homes. Many of these homes come with a high price tag when it comes to repair costs. Most of these homes has been vacant for some time. One other concern would be lenders as they to include the risk of granting a loan due to property conditions. Some lenders out there would make you pay a premium for properties in poor condition. To be on the safe side, a home inspection would be essential as you really would like to make sure that you understand what you potential new home needs in term of repairs before making the deal. Even though you might get this new home of yours to a low price tag…it would be best to include a repair fund to make sure you get the new home up to date and livable.
To skip surprises make sure to perform as many inspections as possible. Downtown San Diego distressed properties can be some of the best priced homes on the market but they could also tend to cost more than expected. ')}