Houston - Crappy House on an expensive street - Need Some Help

Buying & Selling Real Estate
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Houston - Crappy House on an expensive street - Need Some Help

Mark M.
Stafford, TX · Member since 2016 · 37 posts · 11 votes

Greetings to all,

Its been a while since I've posted or really even been on BP, I've been dealing with my full time work and taking care of family but i havent stopped pursuing real estate.

I recently got several calls and wanted to talk about one in particular today.

Its a small ugly house right next to nice, big, beautiful houses. You know the old adage, buy the worse house in the best neighborhood... 

The price for this house is in the 400k range and to be honest there is no way this house is worth that much, but the lot might be. Other houses on the same block are selling for 1-1.5 million. Now those million dollar houses are all new builds, but i did find a comp very similar to my house but in nicer condition for roughly in the 650k range. 

I would imagine that this properties saving grace is its location. I would also imagine the smartest (but hardest and most time consuming) move would be to knock it down and build a brand new house. Seeing as how little experience i have in this field I would say doing that would be way out of my league and should be pursued by a much more experienced investor and/or developer.

I really think this has potential to be a good a deal but I need some guidance and direction on which way i should go or who i should even be dealing with on this.

If anyone could give me some ideas as to the best way to approach this I would highly appreciate it.

Thanks for any input, I look forward to chatting with you guys and gals about this.

Until then, stay blessed.

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  • Andrew M.
    Atlanta, GA · Member since 2017 · 54 posts · 30 votes
    9y

    I assume your intention is to flip eventually? Doesn't sound like a buy and hold.

    0Reply
  • Mark M.
    OP
    Stafford, TX · Member since 2016 · 37 posts · 11 votes
    9y

    @Andrew M. Im really pretty new, so I think I would need to assign or maybe go in with a more experienced investor or developer. Thats what I mean when I ask which direction I should go.

    I cant offer much in the way of knowledge or capitol, but i found this deal and I'd love to learn the necessary skills while putting in my "sweat equity". Or even just assign it and still help out with the project just to gain some experience.

    And to kind of answer your question, my ultimate goal will be to have a mixture of investments. I definitely want to be a buy and hold investor with long term passive income great enough to cover all my costs of living, but I also want to be able to buy, rehab and resell. I imagine it would depend on the property, location and my financial status at the time. With all that said, i think it might be best for me to assign a few times to get a solid feel of how everything works. 

    Thanks for the reply

    0Reply
  • Andrew M.
    Atlanta, GA · Member since 2017 · 54 posts · 30 votes
    9y

    Right, I was alluding to the general rule that nicer, more expensive areas are usually better for flipping and investments in cheaper B or C class neighborhoods are generally better used as rentals.

    Well if it's as a good a deal as you think it is I'm sure you'll have no trouble finding someone to partner with. Good luck!

    0Reply
  • Ryan Terwilliger
    Real Estate Agent · Houston, TX · Member since 2015 · 93 posts · 46 votes
    9y

    It is hard to advise without know more of the specifics. Where, age and so forth. Contact me and I can run some numbers but with out seeing it, hard to say. Sounds promising though. 

    0Reply
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