Abandoned Property Next Door?

Question

Hello,

This past Sunday the police stopped by the house next door to me. They got a call that the door was open and they weren’t able to lock it back. The house has been vacant for almost two years. When I moved in next door back in May of 2020 the owner was renting out the house and then after about three or 4 months it was no longer occupied.

I spoke to the owner once and he apologized for the condition of the home. He would come by to cut the grass once or twice a month but I haven’t seen him in about two years. Not sure what’s going on with the property but I would like to find more out as I am interested in possibly figuring out a way to make it my first investment property. Seems like it’s just been abandoned. It would definitely be nice  to have my first rental property right next door to me. I can tell from the outside it definitely needs some work but I am still highly interested.

I found the owners name and a phone number but just not sure how to approach the situation. I don’t have a lot of cash. I have the equity in my home that I was thinking about as a resource or possibly finding funding some other way if the owner is even interested in letting the property go. I really want to keep my current home as my primary residence and rent out the property next door if the owner is willing to sell. I’m still a fish out of water so I don’t know where to begin. What do you think about this situation? Approaching the owner? My options if the owner is willing to sell?

Thanks for your help!

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Marty Boardman · Answer

I recommend reaching out to the owner (since you have his name and number) and say exactly what you just wrote in this post (that you live next door and would like to purchase the property to keep as a rental). Since you've already met there's rapport and that's key to starting the negotiation.

Be kind and sincere. Find out:

1. What caused him to get into this situation with the house?

2. Has he ever considered selling the home?

3. If yes, how much would he like to get for the home?

4. How soon would he like to sell?

You may discover that he's struggling financially. If this is the case it could be he's underwater on the house and that's why he can't sell it. If he does have equity in the house you could make a deal to buy it and have him carry back a loan to you (less cash out of your pocket).

Good luck Jerica!

Jerica S Buchanan · Answer

Ok. Got it! Thank you so much for your help!