Skip to Content

Your Guide to Investing in A Vacant Property

Investors Researching Vacant Property in Prime LocationFor South Roanoke single-family real estate investors, vacant properties may provide various opportunities. There are vacant and abandoned properties existing in each town in the country, some of which may be in prime locations. But there is some question if it is an excellent choice to spend resources on vacant South Roanoke properties. After all, there is a chance that the property was abandoned (and has remained vacant) for some purpose. But for investors who are looking for a good offer, how do you identify vacant properties, and what is the process of having one? In this guide, we will address these and the major elements of investing in vacant properties.

Are Vacant Properties a Good Investment?

By explanation, a vacant property is one that has been abandoned by the owners. If no one has spent a couple of years living in the property, it might have been turned over to the state. Properties become vacant for several cases, including the previous owner’s death or possibly drawn-out foreclosure proceedings. Due to the various circumstances that the property may be empty, it may or may not be available if someone wishes to purchase it. If the property is tied up in court, the probabilities are no one will buy it until all legal issues get resolved.

Yet, vacant properties that are available for purchase may offer South Roanoke rental property investors a new approach to build your real estate portfolio. That is if you can select the right one! One of the primary challenges with vacant properties is that they are often in a state of disrepair. What that means for investors is that you’ll need to have cash on hand to fix up the property before you can rent it out. However, repair issues may also indicate that the property is available below market price, which could translate into a good return on your investment.

Tips for Investing in Vacant Properties

Together with every other investment property, it is critical to carry out a thorough analysis of a vacant property to ensure that you will make a profit. If the numbers don’t add up, irrespective of how moderate the property’s price is, it is probably not a good investment. When crunching the numbers, keep in mind to add the cost of repair work. You should always include a detailed inspection done, checking for any major issues. Even though you don’t encounter any serious red flags, there is a fair possibility that you will have a lengthy checklist of maintenance and repair tasks that you would need to perform, all of which will contain some expenses. It is necessary to price out all repairs as much as possible because unexpectedly high renovation costs could turn your good investment into a cash-draining nightmare.

Finding Lucrative Vacant Properties

Tracking down the person or bank with the authority to sell a vacant property is quite frustrating. Yet, there are numerous sites that could help you find the information you need more efficiently. Probably the best resources for information on vacant properties are banks. Even though the bank doesn’t hold the property title, they can still provide the information on the property in their records. Another best resource is your local police station. Abandoned properties are prime locations for various criminal activity, which means that the police could be highly familiar with the property you’re researching. In the end, you can drive around and look for properties that look empty and run down. Talk to neighbors or the local postal carriers – they may offer tips on where to find the property’s owners.

Buying the Properties

After you’ve tracked down a willing owner and decided the property has good potential, it is the perfect time to initiate the purchasing process. While the approach is almost similar to other investment property purchases, there are enough differences. It may be a good idea to find a real estate agent and a lender with vacant property experience to help. Contact the owners and introduce yourself, explaining why you want to purchase the property. If they are agreeable, you need to get your financing lined up. At that time, the process works more similar to other real estate sales transactions.

Eventually, you are the best person to answer whether investing in vacant properties is right for you. It tends to be profitable, but there are risks involved. However, if you are an investor in South Roanoke who wants a challenge and you don’t mind taking the time to research each prospect thoroughly, vacant properties can be one of the most exciting ways to get your hands on some bargain-basement real estate deals.

Would you like more information on how to find great off-market deals on rental properties? Contact us online today or call us at 540-595-7411.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details