Do you want to buy single-family Fort Worth rental properties as an investment? If yes, you need to know about the “zombie property” (also called a “zombie foreclosure”) phenomenon. A zombie property is a property that has been abandoned by the owner but has not yet gone through the formal foreclosure process. This may add a few more hurdles for potential buyers. This blog post will describe a zombie property and outline how to acquire one.
What is a zombie property?
When the homeowner abandons a property before the foreclosure process is completed, the property becomes a zombie foreclosure. If a property owner defaults on their mortgage, they might believe they must move out urgently, even though foreclosure has just begun. Or they may abandon the property for other reasons. Since the foreclosure process isn’t over, this zombie property is still owned by the homeowner, not the bank or lender. Generally, these properties are left vacant for long periods, allowing them to fall into disrepair and causing safety and property value concerns for the entire neighborhood. Furthermore, the financial responsibilities of the home continue to escalate for the owner, from property taxes to Home Owners Association assessments and fines – and beyond.
How can I buy a zombie property?
As you’ve seen, obtaining a zombie property can be complicated. While this does not mean you should never consider purchasing zombie properties, you need to be familiar with the risks and take extra steps to protect your investment. Here are some tips you must do if you’re interested in buying a zombie property:
- Do your research: You should fully understand what you’re getting into before making an offer on a zombie property. This includes researching the property, the neighborhood, and the current market conditions. If you are unfamiliar with the place, it is advisable to contact a local property management company with expertise in investment property transactions.
- Get a good home inspector: A professional home inspection is even more crucial if you want to own a zombie property. Be sure to pick a qualified inspector capable of detecting any and all potential problems with the property.
- Have realistic expectations: It’s worth bearing in mind that a zombie property is, by definition, a distressed property. This implies that it will likely need both repairs and renovations and may not meet your usual standards. Make sure to factor this into your offer price.
- Get expert help: Since acquiring a zombie property can be difficult, it is recommended to have an experienced real estate agent, Fort Worth property management company, and attorney on your side. They can help you navigate the process and protect your interests.
You need to do your research and seek the advice of professionals if you are considering buying a zombie property. You can flip a zombie property into a profitable investment with some extra care and attention.
At Real Property Management Meridian, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly review the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.
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