My first post!! Getting close to buying an REO listed on the MLS. The house is brick with 1500 sq. ft. It was listed over 130 days ago and are asking $60K and has an ARV of $140K (which is what my real estate agent told me). Not sure how much the repairs will be yet. We are meeting a contractor at the house on Tuesday to get an estimate on repairs. The house was under contract until about 2 weeks ago…..when the potential buyer just walked away from the deal. There is a house next to it that is also for sale. That house was bought as a flip. The person that bought it was in the middle of fixing it up and just stopped and left everything as is. He is now selling that house. That house is a mess outside and inside. I'm just wondering if I am missing some detail that could be a deal breaker. This seems like a good deal…..just wondering why nobody has bought it yet. Would love some insight and wisdom from some seasoned investors about why this house might not be selling?
Sorry. No help from me. Following.
radon, or some other thing like that in the area? Have u asked neighbors?
MAKE FRIENDS WITH THE NEIGHBORS ANS ASK THEM
Thanks for input. I will check with neighbors.
He could have ran out of money or other life issues. Real estate projects take a back seat when life happens. Ask the agent why the last buyer backed out. Inspect the property and make a deal offer $40k cash.
Thank you!! Would anyone buy a house to flip that had a very messy/junky house next door?
If it works out, buy the neighboring house too. Drag the neighborhood up by the bootstraps.
Many REO's are handled by some executive in an office 1000 miles away from the property so sales can sometimes be lumpy. If you like a property, keep making offers on it until you either get it or it is sold to someone else.
Maybe do a survey and make sure that the houses are on their own property, not encroaching on another lot.
Make sure the ground water is not so high that it floods the basement, house.
Make sure there are not a bunch of termites in the ground, and eaten up wood in the houses.
Make sure the soil is not shifting, depending on where the houses are located, think sink hole.
Check water pressure.
Sooo, many things it could be physically.
Then you have to look at the social things like the houses getting broken into every other day, neighbors from the hood, or even a building inspector going through a divorce:) Or maybe it is just something simple like the buyer could not get financed since the house is a wreck, only certain financing is available.
Account Closed right on. cash offer for 40ks - its seems like this property needs a lot of attention. Are you sure the rehab its only going to be 60k (outside & inside) + permits + 10% added it to the 60k rehab. There is always something. We just placed an offer #westoaklane - wholesaler asking 100k we offered 80ks and it needs about 60ks rehab and its not like really rough of anything like that.