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What Is a Bargain Home, and Should You Invest in One?

There are bargains to be had in the real estate market -- but are they a true bargain in the end?


[Updated: Jun 07, 2021 ] Jul 07, 2020 by Barbara Bellesi Zito

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Pros Cons
• Bargain homes can be a good deal -- which can be hard to ignore for a savvy investor looking to expand their property portfolio. • Bargain homes are typically not turnkey properties. The reduced price indicates that work -- often extensive work -- needs to be done.
• Fix-and-flip investors especially can get more value for less money -- even if it means pouring a considerable amount into a renovation. • They might not be the best move for new investors, who are likely wary of taking on that much risk early on.
• Bargain homes are good "starter homes." Even those not interested in real estate investing can make upgrades and later flip their own home when it's time to move on. • There's a fine line between putting some cash into upgrades and having your new investment property turn into a money pit.
• They are a good move if you have a flexible time frame for moving in or fixing and flipping. • They are not ideal if you're on a tight time frame for repaying a loan.

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