Off market deal - 10 years vacant

5 Replies

Hi BP Community,

This is my first post, so please bare with me and help me learn if I make any forum guideline no-no’s.

I recently moved to Greenville, SC for work.

I was driving for dollars yesterday and came across a, what looked to be vacant, 3/2 single floor ranch. It’s in a small neighborhood off a major roadway with the largest lot in the neighborhood.

Called the county tax office to find out who was paying taxes on the property and got in touch with the owner. She now lives a few minutes down the road in an HOA. She moved due to old age/health problems/wanting to downsizing.

She seems interested in selling to me after our preliminary discussion. I peeked in some windows without stepping foot inside after receiving her permission, and everything is 70’s and not renovated, also been vacant for 10 years or so, which has me wondering if there’s potential for mold and any other issues.

Pros:

- Almost 2 acre lot

- Could easily sell off the two side lots for extra cash, or build on them and sell new construction

- Construction of house seems solid; no broken foundation or anything out of place with siding, roof etc upon visual.

Cons:

- potential mold

- Full renovation needed

- Owner may not understand compromise on price due to amount of $ needed to make livable.

Unsure what to offer for deal and how to estimate costs. Based on what I know, I am torn between wanting to remodel completely, or demo-ing the whole house except foundation to rebuild and add a second story. And then clearing side lot to build a duplex.

Any insight on how to proceed, or additional considerations I should be aware of would be appreciated.

Thanks,

Austin

You need to get it inspected. I could also have termite damage or unseen structural damage.

Are you going to try and buy with your cash or try and wholesale it?

@John Underwood

My goal is to see if she’s okay with getting it inspected before we sign a contract, or to include a clause that allows me to back out specifically for termites/mold/etc.

I will be taking out a loan for it. Haven’t decided which type yet, although this will be my first home purchase.

As potentially great that this deal is, if it comes down to the point that there is mold/infestation of termites etc, I would need to estimate some demo/repair costs to re-do the whole house to see if it makes sense to go through with the deal, or walk away because she doesn’t have understand the necessary price compromise.

My brother and I were joking that i could just park a trailer in the driveway or somewhere else on the property until the house is livable.

The inspection will tell you if the house is in good enough shape to get a loan for it. Let's say the the HVAC is shot or the roof is leaking. You may not be able to get a traditional loan until these things have been repaired or replaced.

You may need to get a private or hard money loan to purchase, do the repairs then get a traditional loan and refinance.

Greenville has a very active realestate club. Our next meeting is on Monday at the Embassy Suites on Verdae at 7PM. We have a website also. Upstate CREIA.