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For Rent or Lease: Foreclosure Homes

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By : Leticia Carvalho    99 or more times read
Although the nation is in the midst of the worst financial crisis in more than 50 years, you can not discount the fact that there are still investment opportunities that have been created by the present situation in the housing industry. For real estate property buyers and investors, the many foreclosure homes offer them a chance to earn considerable profit by purchasing them as rental properties.

If you take into consideration the millions of homeowners who lost and/or about to lose their homes to foreclosure, you can assume that there will soon be a high demand for rental homes. Already, cities and states hit hardest by the mess in the subprime mortgage industry have shown a dramatic rise in the demand for these rental properties.

As a businessman, you cannot ignore the reality that foreclosure properties are a lot more affordable than the other existing homes for sale in the market. Most of these repo homes are sold at hugely discounted prices because: (1) the owners/ sellers are being burdened by the holding costs and (2) market conditions are currently favoring buyers over sellers.

Choosing foreclosure homes as rental houses will also be a lot convenient since there is currently a large inventory of foreclosures. You can choose from pre-foreclosures, foreclosures at auctions and bank foreclosures. Of course, you should expect these repossessed properties to require some repairs since most of them have been long abandoned and some have even been vandalized.

If you are thinking of entering the rental or leasing business, it will be a smart move to consider these foreclosed properties for their better return potential. With the government doing everything it can to unfreeze the credit crunch including the approval of the controversial $700 billion bailout plan, you will soon be in the position to own one of these foreclosures.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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