Purchasing a below market value home comes with a variety of benefits to the buyer. The primary benefit is that it provides an instant return on investment. If you purchase a home for $180,000, but it is actually worth $200,000, your personal equity will instantly increase by $20,000.

Purchasing a property for below market value will also provide you with the ability to spend extra money improving the home. If you purchase for less than market The Continuum Price value and you need to make substantial renovations to the place, you will need to apply for additional funds.

A favourable purchase will also improve the amount of cash flow you receive from the property. When you purchase an investment property for less than the market value, the amount of money you have to spend on the mortgage each month will decline as well. Since the revenue that you receive through rents will remain high and in line with market levels, you will end up being able to generate excess cash flow.