Hello, I wanted to pick the brain of any investors on here. I have an offer from a family member to purchase their lake home in the heart of the finger lakes in upstate NY. Its a 2 bedroom, 1 bath 1300 sq single family home with 50 feet of water front. I can purchase it for $200K. Looks like the value according to zillow and comparing surrounding properties is around $300K. Obviously I would have around 100K in equity from the beginning. Anything I'm missing here? or is there anyone who would NOT jump on this?
Just want to pick the brains of you all that have experience. [not those that think they have experience but really dont :)]
Lakefront property in the Finger Lakes is spectacular but the taxes can be staggering. What lake is it on?
Its on Seneca Lake in Ontario county. It's 2% tax
What's the town? Some areas there are very rural, and others are convenient to more bustling areas, and that can make a big difference.
Its 8 minutes from Geneva. 5 minutes from Hobart and William Smith College
I live in Geneva, you can email me if you have any question about the area!
Make sure you only use recently sold properties as comps not active listings.
If it's truly worth $300k then you've got a home run deal at $200k.
This is assuming it doesn't need any rehab and the $300k value is as-is.
Equity is of no value if you can not take advantage of it.
If you can purchase and turn around and sell for a profit without offending your family member I would say go for it. If you have to keep it you would then need to pull the equity to reinvest or it would need to generate a income from rental to justify the investment.
If it is for personal use it makes no difference what you choose as it is a luxury purchase.
Plan would pull rental income from it and down the road sell it once it increases in value even more. More of a buy and hold strategy
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