Well, there are so many homes on the market today that I start to get giddy. It’s a buyer's market and will be for the rest of the year and maybe even longer.
In today’s post, I interviewed one of my most trusted realtors in the Twin Cities area, Mr. Brian Amiot. He is my go-to realtor for investment real estate.
Satori: Where should I look at buying?
Brian Amiot: You should look for a neighborhood that is not over saturated with homes listed for sale and especially not over saturated with abandoned or foreclosed homes for sale. It should be within a decent proximity of where you live, regardless of whether you plan on renting or rehabbing. Other than that, it's all about trying to find a neighborhood that has relatively short listing times in general.
S: If I buy a foreclosure, what are some of the pitfalls I should be aware of?
Amiot: In buying a foreclosed home, you are buying the home "as-is" in most cases. A lot of foreclosed homes have been sitting vacant for quite some time, so there can be issues with cracking from the extreme temperatures and sometimes even pipes bursting. I always recommend getting an inspection, and to keep in mind that inspectors don't always catch everything. Plan on having more repairs than you initially see.
S: When do you see the market bouncing back?
Amiot: If I knew that answer for sure, I would be in a tropical paradise, being served on hand and foot...but I have seen signs of the market turning in the recent past. There have been more showings and offers on my listings, and I have seen more and more properties that I show clients sell before we even get a chance to see them. I don't think it's going to happen overnight, but I think we are at least starting to head the right direction.
S: If I have 100k to invest in another property what should I look at buying?
Amiot: What to invest in is very different for every investor. It depends if your goals are to buy and hold, or buy and sell first of all. Again, I believe in keeping properties close enough where you can manage them if need be. Other than that, it's all about finding the house that has some opportunity for improvement. I try and look for functional obsolescence, or something that is functionally wrong with a home. But, also something that can be fixed without too much of an expense.
S: What are some of the upsides you look at in homes?
Amiot: I am a personal fan of 3 bedroom, 1 bath homes that have an opportunity of adding another bath. I also like homes that are in nice neighborhoods and down the street from much larger, more expensive neighborhoods. Layout in general is a huge factor, but probably the two most important things that I look for are curb appeal and that "Wow" factor right when you walk in the door.
If you are looking into purchasing investment real estate in the Minneaoplis/Twin Cities, MN area, please contact The Satori Group or Brian Amiot (web-site posted under the link section). We love questions!
