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Real Estate Deal Analysis & Advice

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Phil Oduse
  • Hillsboro, OR
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Flood and Mold

Phil Oduse
  • Hillsboro, OR
Posted Oct 23 2014, 13:48

I'm a newbie investor and came across a property recently that caught my eye - I should probably walk away from it but I thought I would first canvass the views of the professionals - hence my question!!

Looking at a property in W. Oregon - the seller is asking $30K with a APR of about $100K-$110K. - it's a 3 bd, 1 bath - 1,058 sqft on a 8000 Sq ft lot - rentals in the area are commanding about $600- 700 per month.

From what I have been able to ascertain from the seller - the city is requiring the property to be raised.  The house has a crawl space and foundation.   The roof is leaking (valley of the roof is leaking and a couple of areas of the roof are giving way) and there is evidence of mold in the master bedroom closet and a little in the kitchen. It flooded in 2007 (which was only the second time in 100 years) and the house was remodeled at that time. 

It looks like the seller bought the house for $8500 in 2012 (and then realized he had taken on more than he could handle) so I'm guessing that there is a little more give on the price.

Is this one that I should run away from as quickly as possible or is there enough skin in the game to make it a worthwhile proposition - perhaps as a flip?

Would certainly appreciate your advice on this one!

Thanks,

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