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What are the disadvantages of investing in HUD or VA homes?

April 26, 2017disadvantages homes HUD Investing VA

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What are the disadvantages of investing in HUD or VA homes?

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1. Multiple bids force the purchase price up. 2. Good deals generally require a larger down payment. 3. If you win the bid as an investor, and you fail to close the deal, you will lose your earnest money deposit. You are purchasing the property “as is” and you are not allowed inspection or finance contingencies. There are always exceptions and each region has different policies. 4. 80% of the properties need work and/or located in below average neighborhoods. But the other 20% could make you very happy as a real estate investor.