Sheriff Sales Selling More Multifamily Properties in Wisconsin- By: Scott Zahid
A growing number of investors are turning their attention to multifamily properties, with Sheriff Sales and foreclosure auctions becoming their most preferred sources of low-priced properties. In Wisconsin, purchasing multifamily dwellings and converting them into rental properties has become a profitable venture for some.
Foreclosure listings in Green Bay and in other areas of the state are offering a lot of affordable multifamily properties. Realtors have reported that the prices of multifamily residences in certain parts of the state have gone down since 2006, when the real estate crisis started to materialize. Prices are lowest for foreclosed and distressed structures, hence the high interest shown by investors on these types of properties.
For investors seeking Wisconsin Foreclosures, now would be a great time to buy, realtors have stated. They revealed that supply is definitely much higher when held against demand, causing prices to tumble to almost record lows. The multifamily property industry in Wisconsin, realtors further added, is currently a buyer's market. They also stated that prices of these dwellings are mostly 30% cheaper than prices found during normal market periods.
For investors scouring Sheriff Sales and foreclosure auctions for low-priced multifamily properties, the main concern is potential investment return. Real estate experts warned that buyers of these properties should not rely solely on the purchase price, but should also look at long-term benefits and must know how to estimate rates of return. They stated that a cheap multifamily structure might save an investor a lot of immediate cash, but might not produce a lot of benefits in the long run.
When buying properties from foreclosure lists, experts recommend factoring in the amount that will be used on repairing the premises and the cost of maintaining the property as a rental home. Majority of multifamily investors in the state are opting to convert their purchases into rental houses since there are currently more renters than homebuyers in the state right now.
They stated that a rate of return that is at least 10% is reasonable at this time. However, with properties selling cheap at Sheriff Sales and foreclosed property auctions, an investor who converts a multifamily dwelling into a rental home might even get a return of investment as high as 15%, real estate experts have added.
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