have a positive cash flow from the start. This is a typical income-producing asset. As the years go by, you will be able to increase the rent improving your cash floow further.
Property is in an appreciating home neighborhood. Your positive cash flow will go up as the foreclosure property will appreciate in value.
You expect an increase in interest rates home mortgage loans.

Flip foreclosure home when:

There is no positive cash at the start.
Your immediate profit looks good.
You expect a downturn in the market.

Historically, house prices and rent have been increasing. There are no erratic ups and downs as there are in the stock market. Fixer-upper foreclosures offer greater advantages especially if you know about foreclosure inspection and foreclosure repair.

Real estate property values have sometimes been increasing rapidly and at other times slowly. However, the long-term trend has always been up.

Set up your foreclosures business plan

Always prepare a business plan. It’s easy. It doesn’t have to be a comprehensive one. Start somewhere and add to it as you go. Write down all the good ideas that you read, hear, and think. That’s how it becomes a good plan and guide.

A good real estate investment business plan:

sets your goals
gives you an agenda
provides you with a roadmap
enables you to attract investors
helps you easily obtain home mortgage loan from lenders
sets good criteria for future projects

Especially, if you are just starting in the fixer-upper foreclosure business, your business plan will show everybody that you know what you are doing.

Lenders who are going to finance your partners/investors with whom you are going to invest in foreclosure real estate projects need to make sure that you have a viable and profitable project.