Feeling the pain of my first purchase

Feeling the pain of my first purchase

Rehabber · Fort Walton Beach, FL · Member since 2011 · 240 posts · 48 votes

Ok all, I got the photos back on my Toledo property purchase and my heart sank. I now know for sure my move wasn't gutsy it was stupid with a capital S. What really bites me is that I believe the investor who sold me this at auction intentionally misrepresented what he had and I had Sucker written all over me. He on the other hand made sure to word it properly to cover his butt. Anyway, it is what it is. Now I am here with my dilemma and I am praying all of you wonderful professionals can help me figure out what to do so my first few purchases in my new business are not my last few purchases in my dead business.

What to do with this mess. He sent me the deed to sign and notorize but I have not done so yet. Do I just take the loss and tell him to keep it, donate the house (assuming anyone would have it) for a tax write off, try to find someone that wants to fix the place and give it to them for what I paid for it (it also has about 1500 in back taxes due on it),.... I just hate the idea of paying another `1500 wasting a total of 2200 on a property I dont know how to get my money back out of. I started out with very meager equity. I took the chance on a cheap property hoping to make a minimal profit for quick flip to build some equity. I can hardly afford to loose the money. The realtor that took the photos for me said he has a guy that would take it if I paid HIM 3k but I didn't have to worry about the taxes...yeah ok... I could re-list it at the same site I bought it, but I do not want to do this to someone else that is trying to start a business so to me that is not an option. Ok there is my long whine and my desperate plea for rapid advise. If anyone needs to see the photos I would be happy to add them if you could tell me how to. Anxiously awaiting a life vest from any passing boat here...

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Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
Originally posted by Sherry Lewis:
Somehow I don't think the refund is going to happen, but I refuse to allow him to keep my money AND the house lol...

Don't let emotions make this decision for you. If you take title to this property, you may be on the hook for a lot more than your $800 and the back taxes. Don't turn an $800 loss into an $8,000 one.

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  • Real Estate Investor · Chicago, IL · Member since 2008 · 318 posts · 30 votes
    15y

    Yeah thats true, theres nothing worse then a property in the heart of the hood with a value under $15k haha.

  • Rehabber · Fort Walton Beach, FL · Member since 2011 · 240 posts · 48 votes
    15y

    Exactly lol

  • Andrew FidlerBusiness Member
    Real Estate Broker · Toledo, OH · Member since 2011 · 386 posts · 434 votes
    15y

    Hi Shannon,

    I own a bunch of properties about a mile north of this one...and you were most wise to have walked away. The neighborhood is my nearset ghetto and one of the reasons I carry when managing.

    Don't sell Toledo short just because of this one sale, I have yet to find a market where I can make as much rental profit on sturdy houses! Keep looking, fully agree with the advice to lay you eyes on what ever you buy.

  • Rehabber · Fort Walton Beach, FL · Member since 2011 · 240 posts · 48 votes
    15y

    Thank you for your words of encouragement Andrew!

  • Andrew FidlerBusiness Member
    Real Estate Broker · Toledo, OH · Member since 2011 · 386 posts · 434 votes
    14y

    Not a problem, like most of real estate, the deal is in the eye of the beholder...

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