Columbus Hud Homes: The Basics

Columbus Hud Homes: The Basics

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No one said investing was easy, especially when the stock market is crashing and home sales plummet to record lows. However, real estate investors have a brand new interest: Columbus HUD homes.
What is a HUD home?
HUD homes are homes that have returned to the market, as the result of a foreclosure. HUD stands for the United States Department of Housing and Urban Development. HUD homes, as a general rule, are sold as is, and have not had any renovations. They generally are made up of one to four units. Many of these homes are rented out to low income families, according to real estate experts.
A Columbus investment property is somewhat different than investment properties found elsewhere. Before buying a HUD home, buyers must first consider a few things. These include taxes, depreciation rates, and investment returns.
In Ohio, incentives to buy HUD homes are now being offered. On October 1, 2008, those who owned HUD homes were given an incentive of $2,500. This money can be used to pay for such things as tax pro-ration, closing costs, and the replacement of items within the home.
In Columbus, Ohio, HUD homes sell for unbelievably low prices. In 2008, the average price of a HUD home in Columbus was roughly $110,000. And while these numbers represent last years figures, sales are still going strong. This, of course, has perked up the ears of real estate professionals hoping to tap into this highly lucrative real estate investment.

So why are real estate professionals so interested in buying real estate in todays market?
According to Columbus, Ohio mortgage experts, most HUD homes are in prime condition and require very little if any renovations. Because of this, many people are willing to pay the entire asking price and sometimes higher. HUD homes that require restorations are often sold at a discount rate.
And while Columbus has seen its fair share of foreclosures, like most other US cities, one thing remains the same: The HUD housing market has the potential to bounce back quickly, because of its appeal to both average citizens and professionals alike.
How exactly do Columbus foreclosures affect real estate investors?
According to experts, foreclosed homes (such as HUD Homes) have a certain allure to real estate investors. Foreclosed properties generally sell for less than other homes, so investors often buy up these properties. If youre looking to reap generous profits from a foreclosed home, you will need to make some improvements. You put money into making improvements, but you will make generous profits that in the end far exceed the cost of renovations. However, you will need to have at least a 10 percent down payment. According to experts, you will also need to arrange for financing within a 30-day period. This payment can be made by either cashiers check or cash.

About the Author:
Dave Zehala is the Executive Director of the Columbus Real Estate Investors Association. Get tons of FREE Columbus Hud Home Listings, property management, wholesaling, tax foreclosure, lease-option, rent to own, real estate investment, Columbus REO Listings, landlord, and foreclosure info on his websites.



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