Entry Level Home?
One thing I see coming up in studying how to invest in pre-foreclosures is to concentrate on entry level homes.
As a newbie I have no idea how to define, what is entry level home price range in a particular area? Would that be median price in the area? Certain percentage below it? Age of property has any impact? Any thoughts and suggestions would be highly appreciated.
My definition of an entry level home is a property that is affordable by a first time home buyer using an FHA first time home buyer loan.
If you know what the median household income for the area is, then multiply the median income by 2.5 to approximate the price of the entry level home that a median income, first time homebuyer would be able to afford.
they can afford it w/ 25-30% of their income.
The down payment is usually the issue.