Not Just Another "Should I Buy?"

7 Replies

Well! I guess it could be just another "Should I Buy" Post! Good day Biggerpockets! I'm considering investing in a 4 bdrm, 2 bath property. Its within walking distance of the local University. Right! If it wasn't for the current situation in the states or the world, It could or would be an automatic "CHA-CHING!!!". 

Well! Here's where my hesitation and question comes in. First I am a Newbie! This will be my first rental property investment. So! I'm sure I know or feel what most of you will say. But let me continue. At this point I haven't personally seen the property, only pics. Again! I know you vets out there like David Greene will say you don't need to see the property in person and I agree. 

From looking at the pics, Its a total rehab! New Roof, New Electric, New Plumbing, and everything else in between. The property is priced at needing a total rehab, 15k and I wouldn't offer that much. From the pics the foundation is solid. I haven't received an estimate yet. Again! I'm a Newbie! so I'm not going to guess what I think the estimate should be. I know that once completed, the ARV could be 90-100k or more. The property is all brick, built in 1955. There's newer homes across the street and down the street walking toward the school. The school itself is doing a lot of building as well. I have the funds to purchase and do some of the work. Obviously I don't want to put all of my cash into rehab. So OPM or Hard money I will need.

The location is a small southern town. About an hour from the major metropolitan city and international airport. The school is the major focal point. My thought is to be within that bubble around the school or be as close as I can to the bubble. I'm pretty much priced out of the city right now. My strategy is secondary or tertiary cities. My wife says to leave it alone. I'm still thinking about it.

So! Should I buy or look for something that will be more manageable for my first?

That sounds like a challenging first deal for a newbie.  Unless you have a strong background in rehab / construction and the time to manage it, I would think long and hard about taking on a project that complicated.

Where did you find this property? Unless it came to you via personal contacts, it may not be a good deal. If it was on the MLS, there may be a reason more seasoned investors stayed away from it.

Thank you for your response! Yes! I found it on a MLS. I know it maybe a little more than I want to deal with. I do think it could be worth it in the long term. That's one reason I'm still considering. I do have a good contractor, I'm waiting to get his estimates and his opinion.

Haven't seen it in person + looks like a total rehab + new investor = no.

How long has it been on the market? If a long time, why haven't the experienced investors in the area offered on it? Because it's a money pit and a bad deal. If you are assessing repairs online, double them because without seeing it there will be more hiding in the walls, foundation, etc. than you expect.

@Eldridge Stroman I agree as well. Even if the location was solid, this is a lot for a 1st deal. Plus, it's gonna be difficult to get funding without any track record. Try finding something that's closer and doesn't require a major rehab project. Hope this helps!

Thank you for the response! All of these comments is what I expected. Sometimes you really need to hear what you've already known. I'm like the basketball player waiting for the buzzer in order to get in the game, I'm right there! In my eyes, I've missed so many opportunities in my preparation in getting to this point. I receive everyone's advice and will move on. Thank you Biggerpockets!