I located one of the property in Harrisburg, PA online auction.
Here the information on the propert:
Purchase: ~ 5k
lot square: 1525.
no back tax
ARV: 60k - 68,010 (per Realtor Property Resource)
Title: warranty deed
I haven't visit the property. I don't know the condition on the property. My deadline is 7/12. The information that I gather on the website is mix reviews So I need a advise from investor who live or invest in that area.
1. How's the neighborhood in that area? Is it good area to invest in the neighbor?
2. How long is it take to sell the property in that area?
3. The property look like townhouse. Do they have H.O.A in that area?
I'm trying to gather all of information before I travel visit the property. I'm planing to do my first fix and flip or I can wholesale if anyone interest, pm me. I need Realtor and contractor in that area, please pm me. Please let me know should I pass or should I get it.
I'm looking forward to hear any input from all of you.
Thank you in advance,
@David Krulac has some info to offer.
Is it the green one that is boarded up?
You're coming all the way across country to buy a $5,000 property that's boarded up?
There are 391 houses for sale in the area. The average days on market is 166. The median price is $72,000, and the price range is $10,000 to $695,000.
There was a recent sale on Radnor, that I'm familiar with. Occupied by long term tenant who wanted to stay. Seller owed $55,000 mortgage. Property was short sale for $25,000. Everybody went home happy, tenant got to stay in their house, seller was out from under upside down mortgage and buyer got rental occupied by long term staying tenant. I even think the bank was happy because they didn't want another property like this in their REO inventory.
I can guess that the national marketing company for your prospective house is selling all the left over stuff from the tape that has been picked over multiple times. they make money selling these properties as-is no warranty for cheap prices because they bought them for VERY cheap prices.
Do what you want, you won't have any competition from me.
Thank you @Steve Babiak and @David Krulac . The reason the deal so attract to me because of the warranty deed. They don't have mortgage or back taxes on the property. I will take your advise and move on.
Thank you again !
While those are important issues, they are NOT the only issues. somebody called me today and they wanted to sell me a house in that area for $500. I declined. Back taxes are paid and they've lowered the assessment. But the property was vacant and vandalized and stripped of copper, wiring, plumbing, bath fixture, kitchen cabinets and needs a bunch of drywall repair. More work than I'm interested in doing.
There's another house that I know of that is in livable condition for $500, I passed on that one also.
Thank you again. Very interesting and very impress what kind of property out there. I tried to be strong and resist temptation on those property.
@Jason Kha It's interesting to me that you considered a property on the other side of the country. I'm not familiar specifically with the companies @David Krulac mentions, but for what it's worth, i think it would be most worthwhile to invest in an area that you can get to know a bit. I haven't bought any $5000 properties, but the ones i have bought are fairly predictable and generating 10-12% return. The more experience i get to other models and properties a available, i hope that % will continue to increase.
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