Updated about 8 years ago on .
Terrible deals that you have seen other people get into
Anyone have any good examples of terrible deals that you have seen others get into? As an example of what NOT do when it comes to real estate investing.
I read online about this "vintage" 34 room motel that recently sold for $5,250,000. Some investing group bought it
Assuming that the place generates about $250,000 a year (just a rough guess) after operating expenses such as insurance and repairs and wages and such, I have NO clue why anyone would purchase this. They're gonna be in wheelchairs at the local nursing home by the time its paid off. To make things worse, the investing group is planning on a major renovation that will not only cost a lot, but will probably not generate much more income for the property.
This is just one of many examples and I will think of more.