Don't Let The Bad Economy Get You Down!
Jul 17, 2009 12:10 am US/Eastern
Foreclosed Homes Turn Into Investments For Some
MIAMI (CBS4) ―
Last week, CBS4 reported about an auction of 300 homes in South Florida -- all foreclosures. But many may be surprised to learn how low these home sold for.
"There's where our A/C unit used to be," said Bill Fuller.
Fuller, an investor, is perhaps the happiest guy these days without air conditioning. "It will cost about $2,500 to replace this unit," he said as he pointed to an electrical box. He doesn't have power either. What most of us would write off as a mess, he is calling a gem.
"This property in 2006 sold for about $440,000," CBS4's David Sutta reminded him. "that seems a little outrageous."
He agreed, "It's totally outrageous. This was probably involved in some type of mortgage scam or something like that."
This past weekend at an auction of 300 homes, he picked up this three bedroom duplex in Little Havana for $50,000. With some appliances and a little elbow grease the property is expected to produce $2,000 a month in rent. He could practically pay the mortage off in less than three years. "This was a no-brainer for me. More and more they are going to come and I am going to be there waiting for them," Fuller said with a grin. While Fuller's deal, by Little Havana standards, was pretty good we wondered how homes fared in other areas like Coconut Grove and West Miami. What we found was rather surprising. A 3,200 hundred square foot estate in the Grove once sold for $856,000. At auction: $357,000. That's a 60 percent discount.
A three-bedroom townhouse in Miami was appraised at a half million dollars at the market's peak. At auction: $189,000. Auctions, a gauge of true market values of homes, shows prices are 50 to 60 percent today. And people like Bill Fuller excited about it. "I'm standing here today telling you I got a great deal at 50. It's possible I might be able to buy the house across the street a year from now for 35."
To read more
click here for David Sutta's blog.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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