If the area is down you will have to realize up front that obtaining a property for subject to real estate will take some intelligence. You won’t want to be required to limit yourself to obtaining a house that you can live in. For example, that means you buy a property and live in it until you sell it. In such a market you will want to get ahead on other investors. You won’t be able to market it for more than what the area brings. In this situation, you need to tie it up at a big discount to make a fair profit if you are planning to do this the traditional way.
Now flippers will begin by researching prices in the immediate markets. Because of current real estate markets and the amount of motivated sellers, wholesalers who are investing subject to are profiting very good. No matter what you choose to do, at the end of the day, you have to weigh the money you made against the level of effort that came into play getting the property successfully flipped. This is why faster low risk strategies like investing subject to are recommended
As always, remember to educate yourself about financing houses and/or seek a knowledgeable expert before you decide on any new real estate investment business and investment endeavors.
