Why do these homes qualify as good investments?

Published by julia | Filed under Buyer / Seller Tips, Market Trends, Real Estate, Shout Outs

You see these specials on our site such as “INVESTMENT DEALS”. You ask why are they a DEAL?? Well… price per square foot on these are $80 or less. The current price per square footage on a median home in Tampa is $150 per square foot. So these are about $70 per square foot less than the median. To see the median price of homes in the Tampa area, refer to our Marketing Trends Chart: http://www.tampa4u.com/market.html

Let’s do a quick example: Take this house for sale in Hudson, FL:

MLS# T2272559. For sale at $164K with 2050 sq. ft.

That translates to $80 per sq. ft. ($164K divided by 2050). Now go to our Market Trend Chart and select “HUDSON” on the drop down menu and click “RESEARCH”. Go to the 4th chart below to see that the median price of a home in Hudson is $126 per square foot. So if we do the math, this house is $46 per sq. ft. UNDER the median ($126 – $80 = $46). If we multiply $46 by 2050 sq. ft, that gives us $94,300!!!!

As always, on any of these properties, we will do comparables prior to making an offer. But this exercise is a great starting point for picking the best deals on the market. Investors always buy LOW and sell HIGH. So these link we have for $80 / sq. ft. or lower is the best place to find the LOWs.

Incidentally, HUDSON’s prices are staying flat (1st chart) as opposed to other cities in the Tampa area which are on a downward slope. Inventory is also staying level (5th chart). That means that this city have pretty much stabilized. It’s neither going up nor down. It is too bold to say it has bottomed but to me that’s the way it looks. Time will tell if I’m right or I’m wrong:) – this is a subject of another blog, so stay tuned!

Posted by Erich Caparas