Murder... Suicide... Death..

[Chad O.]

All,

There is a house I am interested in that seems to be priced well. The problem is it has a bad reputation and has been sitting on the market for quite some time do too a murder. The house seems to be in really good shape and I like the location, I will not be living in this house personally as I intend to purchase it as a rental.

my question is this. Should I take a chance and purchase this property given its bad reputation of sitting on the market for so long? I am confident I can rent this property shortly after purchasing it. My concern is the attached stigma if I ever decide I want to sell it.

I guess I am looking for some feedback or some opinions on whether or not I should pursue this property? Thanks BP Family.

[Brad Nelson]

Not to revive a dead forum, but in case anyone else comes across this, I'd like to add the standard investment caveat. Any Real Estate Deal can be a Good Deal! I only came across this posting because I am literally in the exact same position. Made an offer on a property, found out a murder occurred in the home about two years ago. The home needs about 20k. The original owners are gone (one dead, one probably in prison-See Above Explanation) and the nephew now has ownership. ARV (without a murder) is 157k. They are actually asking 155k As Is-which even according to the listing agent is hilarious. And this is a property that has been on the market for 22 days in an area where the ADOM is 4.

    So all of that to say what?  What is the house actually worth?  Well the short answer, no one knows.  Unfortunately, there has not been (to my knowledge) an actual clinical study which quantifies the financial impact of resale value in relation to a death on property.  I've found a handful of articles that somewhat dance around the issue and offer a few suggestions, but three different properties is hardly a large enough sample to make generalizations.  

    Therefore, you ask yourself, what's a good deal?  Take my example...for example.  If that seller called me today and said he would sell me the property for 10k, I wouldn't bat an eye.  I don't care if it's the birth place of Michael Myers.  50k?  Probably Still.  100k?  I'll have to do some more research.

    My point being, don't walk away because the numbers don't work. That's what everyone else is going to do.   Use your leverage and MAKE the numbers work.  

    I wish you the best and I hope you're continuing to grow in your success!