Houses priced at 2000-5000?

Question

When i searched the listings in my area i came about properties priced between 2000- 10000. Why are these homes priced soo low?

Michael Rossi · Answer

Matthew,

Forget the comps!  If you are serious about being in this business, then get out of the house and go look at (inside and out) 100 or more of these houses in your area.  By the time you've looked at 100, you should KNOW house values in your area.  If not, look at some more.

Real estate investing is not an internet business.  If you want to be successful, you've got to get out of the house.  What are the properties so cheap?  GO FIND OUT!

Good Luck,

Mike

Matthew Green · Answer

My ambition is to definitely flip properties. However i've learned that by beginning with wholesaling, your able to build your assets as well as knowledge. The house looks incredible! The kitchen is really stunning with the colors accenting the countertops/countertops. I'm really interested in helping you out anyway possible, i dont have much knowledge but i know hard labor is definitely a benefit to you.

Matthew Green · Answer

generally, i understand exactly what you mean, actually i wouldnt want to invest in this area considering its dismal state. There is much more opportunities in surrounding counties and cities. Since you dont live to far from me, are you in need of an aprentice. I'm reallly interested in getting hands on .

Kevin M · Answer

Matt,
What are your goals?flip , rentals,birddogging?If it is to rehab and sell than i can help because thats what i do.I do one house at a time and do almost all of the work myself.A lot of investors use contractors but here i dont see how you can make money subbing everthing out.Id like to hear from other investors in the buffalo area.i just finished one in tonawanda(its 7 fremont tonawanda ny 14150 do i search on realty usa its up right now)let me know what you think.Matt pm me your contact info ill call you.thanks kevin

Kevin M · Answer

Matt,
I live not too far from you and from what i see in buffalo as well as nf its a risky investment at best.these homes for 5000 and under are money pits that will cost you from 15000 to 40000 to fix depending how much work you do yourself.you can get lucky at the auctions sometimes but i like too stick to the surrounding areas,ex amherst tonawanda,cheektowaga..better areas where people want to live.also dont trust zillow their not even close most of the time.good luck

Matthew Green · Answer

Thanks, i plan on attending as many open houses as possible. this should help get me aquainted for sure. i understand what you mean about the ARV expecially in this area. if anything this area may be a better buy&hold investment.

Joseph M. · Answer

The houses in this range, usually aren't cheap when you consider the costs to get them into move in condition. I know there are a lot of cheap homes in Niagara falls and the buffalo area, as I've purchased some in the past. If you can find good deals on properties that are already rented or just need a little work, i'm not sure if it's going to be worth the effort to purchase something that needs a ton of work. The ARV values in this area just don't seem high enough to justify the amount of work that needs to be done.

I that you should be taking a look at these homes even if you aren't ready to buy ..so you can have a sense of the market when you are ready.

Steve Doyle · Answer

Matt,

My advice is just keep looking. Eventually you will find an investment that works for you.

I usually map out 20 drive bys and spend half a day checking them out. I find usually you will get 1 in 20 that is worth a further look.

You probably wont have much luck finding open houses in this kind of price range.

Jim Wineinger · Answer

My  experience leads me to the tax assessors web site, or if possible to the courthouse and pull the card myself. There is more information of that card than on the ones you will find online.

Their assessement is usually a little low and may be a little outdated but can be used to get a fairly accurate valuation of what the property could be worth and what the "replacement cost" should be. Pay attention to that section of the property card.

This should not be used to replace a driveby but could help limit your driving to those that are worth the time.

If you can purchase a property for 2k with a replacement value of 45k that is only currently assessed at 30k then you can count on putting into it at least 15k. Then add to that what you see needs to be done on your driveby to make the lawn presentable. 2+15+? leaves you with only 28k-? to get it back to that 45k value. And further inspection of the inside (not done most years by the assessor) may reveal that more needs to be spent just to keep it at that 45k.

The tax assessors site can be a good tool to also evaluate how far off those area comps are. Look at the comp property in the tax assessors site. This may give you an indication of how much the comp is overpriced or how much valuation increase you may be able to get with good renovation. Your choice as that could go either way.

Josh Bryan · Answer

Go look.  I had plenty of people "look" at my house when it was on the market.

Houses priced at 2000-5000?

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