Imagine a house sitting on the corner in a hot neighborhood at 123 Main Street in Anywhereville, USA. The appraised value is $300,000. This prime real estate would be the joy of just about anyone who had the opportunity to buy it. However, this particular property has the ability to be the best investment or the worst money pit. What dictates the end result you ask?
You see, in real estate you make your money when you buy, not when you sell. Purchasing this property for the right price of $200,000 (PriceA) would afford you the luxury of instant equity of approximately $100,000. Purchasing this property at the appraised value leaves you with $0.00 equity. If you fall behind on maintenance after a couple of years having purchased at purchase price A, you are still at an advantage and you can dump the property and turn a profit. Had you purchased it using purchase price B you would have a difficult time selling it and would probably have to sink money into it to get from under it.
If you are currently in a situation similar to purchase price B; give us a call. We may be able to help you get a fresh start so that you can begin purchasing like Purchase A. Call us at 513-601-9090 or send us a message detailing you scenario. We'd love to help!