Atlanta, GA · Member since 2015 · 38 posts · 28 votes
I've made an offer on a duplex built in 2003 in a class C neighborhood, and from then to now, it has been sold 6 times. The numbers look good for this property so i'm confused why it would be sold so frequently.
What would cause investors to get rid of this property so frequently?
Miami, FL · Member since 2014 · 18 posts · 8 votes
9y
Perhaps my best bet would be it's generally not a preferable area. It really depends on the specific details of the property. Has it been bought & sold at a loss primarily?
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Ben Hooper Built in or rehabbed in? Just making sure to ask for clarity there. I've seen listing agents put a rehab date before on the MLS. You think there's be a way to stop that, but I digress. I'm guessing if you get *actuals* you'll find that collected rents different from projected rents. Maybe it was owner-financing gone wrong a time or two? Not sure how that would show up. Did you ask the selling agent?
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
9y
It's a section 8 property and under renovation. it may not have met section 8 standards and they may even have a hard time renting it, that's probably why it has switched hands so many times. but it could also be the same owner, they go bankrupt, open a new co and sells it to their new co. and resetting the basis on the property. now his basis is less, sells and does not claim money he made.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
@Ben Hooper Foreclosure would make sense if Investor A bought on projected income ➡️ collected rents were lower, didn't have reserves, gets foreclosed on ➡️ Investor B thinks they are getting a deal because it's in foreclosure, finds themselves in the same situation as Investor A, gets foreclosed on (or in 2008 they were just upside down in the property and walked away) ➡️ Investor C buys at the bottom of the crash and is just looking to cash-in now....
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Ben Hooper What's even more interesting is that it's been on/off the market a couple of times since they bought it. So at least 2 deals have fallen through. What the free market has glaring said is: it's not worth $140K. Taking the "sold" history out of it you need to figure out what cost the other buyers with an accepted offer to back-out of the purchase. It *might* be they had issues with financing, but twice is a row? And they pulled it off market the first time? I'd really be racking my brain to try and figure out what those previous potential buyers know (or found out) that you don't...
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Ben Hooper This may explain the previous low sale price:
https://hotpads.com/1065-ada-ave-nw-atlanta-ga-30318-1mf409z/ab/pad-for-sale
Why it was gutted is definitely a question I'd love to hear answered.