There is a property near me that has been listed on the MLS for a bit. It's a small 1Bed 1Bath on a .25 lot. It's right in the middle of downtown and walking distance from everything. The issues my realtor mentioned are that it's backed against a railroad tracks and it's a homeless thoroughfare. The railroad only gets used once or twice a day during the week for hauling lumber. Do any of you have any experience with location like this?
What is your exit strategy for this property? I certainly would not expect to flip it, given the neighborhood. You could probably use it for a rental, but expect to receive lower end rents and have a high tenant turnover (i.e. intensive management). Without knowing the exact location, those are my thoughts. There may be redeeming characteristics that I am unaware of.
I was thinking as a rental property. There is a larger young working class from restaurants and such that would appreciate the location.
I would forget it. It's probably a steal for a reason, unless you want to go into that business of lower income homes as @Nina Davenport stated.
You could ask the realtor when and what company, and then tell them you want to be there when it passes.
You could then also call that company and see if they have expansion plans to make it more active.
Personally, I would wait, but maybe that's because I wouldn't want my tenant dealing with those issues.
You had me at homeless thoroughfare.....
About the only thing you can't change about a property these days is the location!
Unless you are interested in diverting the homeless traffic, I would look elsewhere.
Think about the type of tenant you are looking to attract and whether they would really be comfortable there.
Lots of fish in the property sea.
Think about the ultimate question, selling, as you will one day. Will the train stop running by then and the tracks taken up? How about the homeless situation now, is anyone; city, county, or private org; doing anything to help resolve it? While no one can predict the future, you have too much in front of you now in the type of tenant (as already mentioned) and location that will prove to be problematic.
if it cash flows and the numbers work go for it
Fence the lot to stop the cut through
What Daria said is extremely important, and something I forgot to mention, but that I have learned to factor into my vetting of a property. I have learned that, just because I am willing to deal with a negative situation, will future buyers down the road be willing to deal with it.
Always plan ahead. Remember the 5 P's:
Prior Planning Prevents Poor Performance. Learn to think waaay waaay ahead.
I have a bus stop in front of one of my fourplexes, and people would constantly cut through my yard to get there. All I did was put up a fence and the problem was instantly solved. The tracks issue is tougher, though.
Thank you all for input. I agree on the resale issues.
I will continue to look for other property
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