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Investors Focus on Apartment and Townhouse Foreclosures



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By : John Cutts    99 or more times read
Run-down apartment buildings and townhouse foreclosures have become targets for a handful of investors in Texas. Most of them purchase the structures, rehabilitate them and rent them out to tenants. This has resulted in improvements in certain areas of the state, particularly in locations with a number of dilapidated and unoccupied premises.

Investors Focus on Apartment and Townhouse Foreclosures

McAllen Foreclosures and other distressed properties in various areas of Texas have caused neighborhoods to decline, according to real estate market observers. The efforts of these investors, though, have helped revitalize certain communities. One example is the Conti Organization helmed by investor Carlos Vaz. Since 2009, Vaz has bought four apartment properties in Houston, which had a total of 1,098 units.

Vaz's company refurbishes these multifamily Texas foreclosure homes and collaborates with community centers and churches to find renters who can fill in the units. In one property in the southwest part of Houston, Vaz was able to raise the occupancy rate to 92% from 43% in a span of 14 months. He reveals that his company is able to bring the rental rates on these buildings close to market value after rehabilitation. He was even able to add between five and 10% to the rent to gain some profit.

Vaz's efforts as well as the efforts of other investors who purchase abandoned apartment buildings and townhouse foreclosures have helped rid neighborhoods of empty buildings that are causing neighborhood blight. This helps improve the safety condition of the neighborhoods since the rental homes are able to attract families and people with stable employment, who can provide the community with stability.

According to local brokers, investors will find foreclosed homes increasing in numbers in 2011, particularly among the multifamily properties segment. They claim that five-year mortgage loans will soon be due for most of these premises and they will likely be available as distressed properties. Because of tight credit policies, most investors are shifting their focus on foreclosed and distressed properties that can be purchased for cash.

With more multifamily housing and townhouse foreclosures expected to enter the market in the next two years, local Realtors are hoping that more investors like Vaz will arrive in Texas to help revitalize neighborhoods by renovating dilapidated structures. They added that increasing occupancy rates in these premises will make neighborhoods safer and more stable.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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