Criteria for a Good Investment Property in Lake Charles LA

By
Real Estate Agent with Marilyn Boudreaux, Century 21 Mike D. Bono & Co.'s

JUST SOLD IN LAKE CHARLES LA!

 

Lake Charles Investors  and Lake Charles Home Buyers look at  property very differently.   Investors in Lake Charles LA are always looking for homes that can be rehabbed and either rented or SOLD for a quick profit.  The home buyers who will be owner occupants always prefer a newer home as opposed to an older home that may require work.

When searching for investment property, the investor client can overlook cosmetic issues with a home.   Stripping wallpaper or painting kitchen cabinets are an easy fix.  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  that just sold at 4809 Ponderosa in Lake Charles is a good example of what a good investment is in Lake Charles.

4809 Ponderosa was a one owner homer that was neat and clean and only in need of a few modern updates.  The home was structurally sound on a slab with a brick exterior and 5 year old roof.  The investor buyer was not turned off by the wallpaper, older carpet and 50 year old ceramic tile bathroom!

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  homes for sale for $30,000 or $40,000  may be getting more than "TLC" projects and could very well purchase a foreclosure. When paying a cheap price you may end up paying the price with structural issues, termites, plumbing HVAC, electrical repairs or worse!

Also compare the style of the home being purchased. 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. An 890 sq ft cottage home on piers may rent for $600-$650 a month in Lake Charles whereas a 1600 sq ft. brick 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 an heir property listed for $109,000 and sold for $105,000. The sellers gave the buyer a $3,000 repair allowance. The 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!

 

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For more information on Lake Charles Real Estate, visit my website.  You can search homes for sale in Lake Charles, Louisiana,  and view up to date information on Lake Charles Subdivisions, Neighborhoods

Find Lake Charles Realtor Marilyn Boudreaux Century 21 Mike D. Bono & Co.'s on Google+

If you are planning a move to or from the Lake Charles, LA area, I can help!   I am a full time Realtor licensed by the Louisiana Real Estate Commission and am affiliated with:


Century 21 Mike D. Bono & Co.'s

4410 Nelson Road, Lake Charles, LA, 70605 USA

337-478-1578 or 337-499-9592

CENTURY 21® is a registered trademark owned by Century 21 Real Estate LLC. An Equal Opportunity Company. Equal housing Opportunity. Each office is independently owned and operated.  The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments are not warranted or implied representation of it's accuracy,  All information is copywritten and the property of the Author, Marilyn Boudreaux.  

 

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Rainmaker
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO

Marilyn

Congratulations on the sales and may there be many more in 2012.

Good luck and success.

Lou Ludwig

Jun 18, 2012 04:10 PM #1
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Doug Rogers
Bayou Properties Realty - Pineville, LA
Your Pineville Louisiana Agent

In cenla the sweet range is 75-95k. At this price you can get a decent home drop 7-10k in it, and still rent for a small profit. Those 15k shotgun homes?? Not for me!

 

Jun 18, 2012 04:16 PM #2
Rainer
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Doug Bullwinkel
Vitek Mortgage Group - Roseville, CA
NMLS #281609

There are some incredible values out there today.  It wasn't very long ago when you would have a huge negative rent cost, even when you purchased with 20% to 25% down.  Now many properties cash flow with an excellent return on the investment.

Jun 18, 2012 06:32 PM #3
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Joni Staples
Berkshire Hathaway Home Services - Anderson Properties - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®
Marilyn: Congratulations on the sale of this home on Pondarosa Drive!!
Jun 18, 2012 08:17 PM #4
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Marilyn Boudreaux

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