What can a home buyer find for $100,000 in Lake Charles Real Estate? Investors in Lake Charles LA are always looking for homes that can be rehabbed and either rented or SOLD for a quick profit.
When searching for investment property, the investor client can overlook cosmetic issues with a home. The investor is going to do some remodeling and updating and will already have a budget in mind when viewing Lake Charles Homes for Sale. So the investor is looking for a home with what I like to call “good bones ” meaning, existing living space and structure. An investor’s eyes can see the potential of the property and this listing was a one owner homer that was neat and clean and only in need of a few modern updates.
Although most investors have a formula of return on investment, buying the cheapest is not always the best method when beginning a search of Lake Charles homes. A $30,000 property vs. a $100,000 property comes into play.
For instance investors who purchase can pick up homes for sale for $30,000 or $40,000 these may be foreclosures. When paying a cheap price you may end up paying the price with structural issues, termites, plumbing and electrical repairs!
Also a cottage style home on piers will typically be a smaller structure than a traditional home on a slab and the rental income will also be a variable. A 890 sq ft home on piers may rent for $600-$650 a month in Lake Charles whereas a 1600 sq ft. home on a slab can rent from $1,200-$1,500 monthly in Lake Charles!
This home located at 4809 Ponderosa Drive is located in the Southern portion of Lake Charles. 4809 Ponderosa is a 50 year old 3 bedroom 2 bath home with 1660 sq ft built on a slab. The lot size is 105 x 119. This is a traditional style home which is appealing to Lake Charles residents who would like a fenced yard with a nice size floorplan!
4809 Ponderosa was and heir property listed for $109,000 and sold for $105,000. The sellers gave the buyer a $3,000 repair allowance. Market Analysis showed similar homes on the street have sold for $159,000-$165,000. Purchasing the property at $105,000 with a $25,000 budget the investor ends up with $130,000 investment in this South Lake Charles home.
Once improvements are made this home can be easily rented for $1,500/mo or listed for sale. If the investor choose to sell the home, the ROI (return on investment) could net anywhere from $20,000-$30,000. This is why 4809 Ponderosa went under contract the first day it was listed in the MLS—it is a smart buy!
If you are an investor in Southwest Louisiana, give me a call. I would love the opportunity to earn your business and be on the lookout for another property like this one for you!