These two must be the most affordable HUD homes in Columbus. They are cheap. Each is listed for less than $10,000. A smart investor will be able to make a lot of money on these Columbus houses.
2414 Parkwood, Cols, 43211 141 S. Ogden Ave, Cols, 43204
HUD-owned houses like these are mostly purchased by savvy investors, who know that there is gold behind the surface. The government is a very motivated seller and will do whatever it takes to get rid of these homes. In the worst case they will end up as $1 HUD homes offered to the City or a non-profit community organization.
Make Money as a Landlord
As I did not see the inside, I can’t say how much work they need. However, based on my experience as a real estate investor and landlord, I would estimate that it takes between $15K and $20K to make them Section 8 compliant and rentable.
After proper rehab, these HUD homes should rent for at least $600 a piece, probably more. If an investor puts a total of $25,000 into a house and rents it for $600 per month, the total annual income would be $7,200 – a 29% return on the total investment. Of course, you have to consider property taxes, insurance and vacancy expenses.
Now this deal does not look that bad, but it’s not for everyone.
It will take an investor that has the cash or access to rehab money, and wants to take on this challenge. But there is a good chance that the investment will be recovered in 4 years. Then you own a free and clear house, and your rental cash flow is pure profit.
Interesting Facts about these HUD Listings
141 Ogden is listed with a minimum commission of $1,250 each to buyers and sellers agents. This means that after closing costs and commissioins there won’t be much left for HUD.
2414 Parkwood does not have a minimum commission. Now imagine how hard a real estate agent will work for 3% of $3,000? Yes, that’s just $90. It won’t even pay for the gas to show the house.
When you look at the sales history of these 2 HUD homes, you can estimate the approximate amount of the FHA loan that was originally used to purchase these houses. 2414 Parkwood sold in 1996 for $23,800 and the auditor has it valued at $25,300. 141 Ogden’s last owner paid $43,714 in 1995 and now it’s valued at $29,600 by the auditor.
{ 1 comment… read it below or add one }
hoping to find a house i can call home