All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books
BlogArrowReal Estate WholesalingArrowHow I Came Across the Roughest House I’ve Ever Seen (& Profited From It!)
Real Estate Wholesaling

How I Came Across the Roughest House I’ve Ever Seen (& Profited From It!)

Chris Feltus
Expertise: Personal Development, Business Management, Real Estate Marketing, Real Estate Deal Analysis & Advice, Real Estate Investing Basics
70 Articles Written
abandoned house

This was the type of neighborhood that you could tell used to be the crown jewel of the area, but over time, neglect started to spread from house to house like the plague until the whole neighborhood began to suffer. It’s a shame, because some of these older style homes are incredibly beautiful with architectural detail and styles that simply are not done anymore.

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

I have been to a lot of neighborhoods in Dallas and seen it all, more or less, from the perspective of both a real estate agent and investor. From low end homes to multimillion dollar 10,000+ sq. ft. homes off the M streets. I have seen it all. But the "roughness" of this neighborhood probably even tops the former drug house I did a while back and probably looked rougher than the hoarder house I did in Fort Worth (never thought that would happen).

Getting the Lead

The homeowner had given the house to her son. But apparently he was a thief and had been stealing big ticket items from local electronic stores and selling them off to pawn shops, people on Craigslist and eBay. And he had been using his home as a storage front for his spoils, for himself and his “colleagues.” Eventually he was caught, and now the house was now abandoned.

Related: How to Protect Your Rentals Against Tenant Abuse (a.k.a. What I Learned From a Hoarder House)

With the neighborhood in the shape that it was, she didn’t want the liability of having a roughed up house, and to make matters worse, she was many miles away. She found my website and gave me a call and asked me to take a look at it. My website sort of serves as a catch all; it generates all sort of leads that I am not explicitly targeting with mail or other methods. These sort of things just start to come in over time as you establish a vast online presence.Chris Feltus

At first I didn't even know if I wanted to venture out that way since it was so out of the norm from what I normally do, but the seller was so desperate to sell, she basically said she would take "any" offer. I always give sellers a fair offer based on the ARV of the home and the amount it needs in repairs. I don't take advantage of situations like this, not only because it's the right thing to do, but because I think treating people right helps lead to more opportunity in the future. Nonetheless, I decided to head off and book the appointment the next day.

Scouting the House

The neighborhood was so shady, I felt uncomfortable getting out the car, and this was in broad daylight at two in the afternoon. The house just sat there on an overgrown lot, with busted windows and beat up plantation shutters. Access to the property, you say? No need when the front door is completely kicked in. You could see the bricks that were used to bust open the door on the way in.

Little light emitted from inside, despite it being a scorching bright afternoon here in Texas. It appeared incredibly black, almost like an empty abyss that smothered any light unlucky enough to cross its path. Once I stepped foot out of the car, I could feel I was being watched. I could not only feel the presence of watchful eyes, but see people peering through the blinds as well. I almost felt like I was an intruding on this house. To see inside, I had to use my flashlight to find where the windows were and pull the black tarps covering them down.

If that weren’t enough, there were shards of broken glass lining the entire back and front yard. You had to be very careful with your steps. The trouble was, most of the lawn was so tall, it went past my ankles. To my surprise, there were no code enforcement notifications plastered to the house. But then again, I suppose when this is norm for this neighborhood, even code enforcement puts up a white flag.

Inside the House

On the inside, everything was a mess. The carpets had been completely uprooted in most sections, nails poking up where some of the t-molding had been removed, and a strange black fungus lined the walls in the family room. And there were several cockroaches moving around in the kitchen, looking like they had set up shop underneath the fridge. The house probably had an ARV of $50k or so. The problem is that some sections of this neighborhood were actually not that rough, but were in a transitional state with a lot of investors flipping homes. But in this phase of the neighborhood, everything was still pretty bad. Just goes to show you how much a neighborhood can change by simply going across a major highway bisecting the neighborhood.

I remember hearing a story from a buddy of mine who served in Iraq and now is a full time real estate investor. He used to work outside one of the green zones. There were times where he knew there were intelligence scouts reporting enemy snipers on the rooftops, but he and his team would still have to navigate these areas. Anyway, he once told me “there have been times I have felt more unsafe looking at some of these homes than I ever did in Iraq.” I used to always think he was dramatizing a bit since I have seen a great deal of the homes in and around Dallas. But after this encounter and a few others, I think I can relate and empathize more with his statement.

Related: Dirt, Dead Mice & Cobwebs, Oh My: What I Learned From My Latest Tenant Horror Story

That’s why it’s always important to let a friend, business partner, or loved one know where you are at all times. I used to just text my wife the address and time, but I look at so many houses now, I just use Google calendar and upload my schedule in advance and share it with her.

Conclusion

Long story short, I was able to get the house under contract and wholesaled it to a buddy of mine who specializes in lower end homes in rougher areas. His exit strategy was to put in a fairly minimal rehab and exit on the back end with owner finance. Even houses that I don’t want that come to me via my website, I can still turn a profit on; that’s how great an effective, converting website can be.

What’s the roughest house you have looked at?

Let us know in the comments below!

By Chris Feltus
Chris is an active real estate investor who buys and flips houses in the Dallas real estate market. He enjoys helping others along on their journey. I...
Read more
Chris is an active real estate investor who buys and flips houses in the Dallas real estate market. He enjoys helping others along on their journey. In addition, Chris operates as a licensed Realtor in the Dallas-Fort Worth area.
Read Less
8 Replies
    Joseph Ball Residential Real Estate Agent from Groveland, Florida
    Replied over 5 years ago
    Could we look at your website, please?
    Chris Feltus Residential Real Estate Agent from Fort Worth , Texas
    Replied over 5 years ago
    http://www.feltusfamilyhomes.com/

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Bob Baldwin Investor from Shelbyville, Kentucky
    Replied over 5 years ago
    Can you share with us some $$ numbers on this deal please ?

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Bob Baldwin Investor from Shelbyville, Kentucky
    Replied over 5 years ago
    Was the house Structually Sound ?
    Chris Feltus Residential Real Estate Agent from Fort Worth , Texas
    Replied over 5 years ago
    Whoops, I knew I would forget some of the details. The foundation was OK, however, the roof was very dilapidated. I always bring a ladder with me and inspect the roof. On this property there were whole areas where the shingles had worn out completely. And one spot where they had used some sort of makeshift material to cover up a hole in the roof as well.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Jay Johnson from Ruffin, North Carolina
    Replied over 5 years ago
    Way to make some money on something a lot of investors may have passed on, Chris! Do you have any pictures of the property? I would guess this is just a pic to go with the theme of the article. If not, and this is the property, then dang, I let some get away! Haha!

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Lois S. Investor from Brentwood, California
    Replied over 5 years ago
    Wow! I thought you were going to say that the owner paid YOU to take the house! Interesting story – Thanks for posting.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Eyan Lakhani Wholesaler from San Antonio, Texas
    Replied almost 5 years ago
    Hey Chris. Great case study ! Thanks for sharing. Just out of curiosity. If the ARV was 50k. How much did you pay the owner ? and Wholesale fees ? Just asking to learn what numbers to put together since there are a lot of ‘abandoned’ properties in my city in D neighborhood with ARV around 50k.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
Rotate Log in or sign up to comment

Related Blog Posts

Real Estate Wholesaling Nov 13, 2020

Opinion: I Don’t Trust Anyone Who Wholesales—Here’s Why

By Darren Sager

To me, wholesaling is the Wild West of real estate transactions. Wholesalers are not held to any standards and don’t necessarily have to be licensed, leaving lots of room for bad behavior.

Read more →

Real Estate Wholesaling Oct 30, 2020

The Key Phrase in Wholesale Contracts That Could Cost You

By Marcus Maloney

Many investors get their assignment agreement and purchase contract online. But there’s verbiage in your assignment that can cost you.

Read more →

Real Estate Wholesaling Oct 26, 2020

Betting on Wholesaling: One Couple’s Journey Into Joint Investing

By Marcus Maloney

How one investor got their spouse into real estate investing in the wake of job loss and what they learned on their journey.

Read more →

Real Estate Wholesaling Oct 08, 2020

4 Common Myths About Wholesaling—Debunked

By Marcus Maloney

As a wholesaler, you must develop a solid business model. Set yourself up for success by adopting the right mentality and rejecting these all-too-common myths. 

Read more →
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.