Investor Blogs Can You Still Find Below Market Value Homes for Sale in 2019? by Nadia Abulatif February 20, 2019February 19, 2019 by Nadia Abulatif February 20, 2019February 19, 2019 Finding below market value homes for sale in 2019 is entirely possible. How can that be true when rising property prices have become a common trend in the US housing market 2019? Well, the best way to answer that question is to reveal to you all the ways to find these investment properties! 5 Ways to Find BMV Properties for Sale in 2019 1. Motivated Sellers Motivated sellers are your best bet when it comes to finding below market value homes for sale. A motivated seller is merely a real estate investor or a homeowner who is selling his/her property with urgency. In other words, they are trying to get rid of the property as soon as possible. In every housing market, there are motivated sellers. Yes, even in the 2019 US housing market. Why? Because their circumstances are usually personal and not tied to real estate market trends. The trick comes in finding motivated sellers. One way is to work with county officials to get data on tax delinquents in the location of your choice. The property owners that make it onto these lists will be a great source for the best real estate deals in the market. This real estate investment strategy isn’t known to many and some simply won’t put in the effort it takes to get this list. So you won’t be competing for these investment properties even in the tightest seller’s market! Related: The 2019 US Housing Market: A Seller’s Market or Buyer’s Market? 2. Real Estate Websites Another excellent place for buying an investment property that is below market value in the US housing market 2019 is real estate websites. Even current market trends are no match for technology! If below market value homes for sale are out there, online real estate investment tools will find them! While there are plenty of listing sites such as the MLS, you want to use a website that allows you to find below market value houses for sale that also make for profitable income properties, like Mashvisor. Related: The 10 Best Real Estate Investor Websites of 2018 3. Spread the Word This is a more traditional way of finding below market value homes for sale, but it’s still effective in 2019. So, why don’t you ask people around or even post on social media? You’ll be amazed at what you can find on these platforms. You might even find a motivated seller this way. 4. Go for Foreclosures Buying a foreclosed home is a great choice for below market value homes for sale. While it’s true foreclosure activity is down in the US housing market, there are still cities where you can find this type of investment property. Check out places like Houston, Detroit, Minneapolis-St. Paul, Milwaukee, and Austin- all of these housing markets saw a rise in foreclosure starts at the end of 2018. You can also check foreclosure websites or local banks. 5. Work with a Real Estate Agent The last way to find below market value homes for sale is to work with a real estate agent. A dedicated agent will find you the best real estate deals in any market. In addition to this, a real estate agent with killer negotiation skills will be able to lower the listing price and maybe even create BMV properties were there weren’t before. Click here to find real estate agents in your area. Is Finding BMV Properties Worth the Extra Effort? It’s important to point out that while I’m saying that buying an investment property below market value is possible in 2019, it’s not necessarily easy. Still, it’s worth the extra effort as there are plenty of advantages to this type of investment property. Less Mortgage, More Equity Below market value properties are the best when it comes to investment property financing. The property price has a direct effect on your loan as well as your equity share. So, for example, if you buy a house for $150,000 that has a real value of $200,000, that means that you will have to pay down $30,000 and finance it with a $120,000 loan and own equity worth $80,000. In the original price scenario, you would have had to provide $40,000 in down payment, finance it with a $160,000 loan and only own $40,000 in equity until you start repaying the mortgage. Below Market Value Homes for Sale = Higher Cash Flow As we said before, when you buy a property below market value, you will need to borrow less money. This means that the less you borrow, the lower your monthly mortgage payment, and thus, the higher the positive cash flow you get to enjoy. For example, with the same investment property we talked about before, let’s assume two scenarios: Scenario #1. Market Value Property value: $200,000 Down payment: $40,000 Mortgage: $160,000 Monthly rent: $1000 Monthly mortgage payment: $750 Monthly rental expenses (expected and unexpected): $200 Cash flow: $50/mo Scenario #2. BMV Property value: $150,000 Down payment: $30,000 Mortgage: $120,000 Monthly rent: $1000 Monthly mortgage payment: $500 Monthly rental expenses (expected and unexpected): $200 Cash flow: $300/mo Of course, these numbers are just there to put things into perspective. But, it is true that the less the mortgage is, the less your monthly payment is, and the higher the positive cash flow. Related: Why, How, and Where to Invest in Positive Cash Flow Properties Works for Fix-and-Flip Fix-and-flip has been one of the most lucrative investment strategies for so long. It is when you purchase a distressed property, fix it, and resell it for a profit. If you buy an investment property at market value, it is possible that you could make a profit once you renovate it. Renovation forces appreciation. Therefore, you could manage to sell it for more. However, if you find below market value homes for sale and flip them, then your profit margin increases. A Few Quick Tips for Buying Below Market Value Homes for Sale As you can see, while it may not be an easy task, searching for BMV properties is really advantageous. To ensure the process goes smoothly, here are a few real estate investing tips to follow during your investment property search. Tip #1: Always do due diligence including a thorough investment property analysis. Tip #2: A thorough comparative market analysis is also a must. Find real estate comps which will allow you to compare house prices in the same location to ensure you are buying a below market value property. Tip #3: Check out Mashvisor’s Property Finder. We’ve got the best real estate investment tools to find the most profitable below market value homes for sale in the market. Do you have a free Mashvisor account? Use our Property Finder to find lucrative below market value homes for sale that match your criteria in a matter of minutes! Need more tips? Read: Real Estate Investing Tips: How to Find Investment Property for Sale Below Market Value Start Your Investment Property Search! START FREE TRIAL AgentForeclosuresProperty FinderProperty PricesProperty SearchReal Estate Websites 0 FacebookTwitterGoogle +PinterestLinkedin Nadia Abulatif Nadia Abulatif is an experienced Content Writer at Mashvisor. She was a trainee lawyer before switching to writing about real estate. She is currently doing an LL.M. in Human Rights and International Law. Previous Post A Guide to Choosing the Best Rental Property Strategy: Airbnb vs Traditional Next Post The Expert Guide: How to Make Money on Vacation Rental Property Related Posts 5 Affordable Neighborhoods in New York City for Investment Property When Will Housing Prices Drop? Should You Wait Before Investing? 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