Licensing and Inspections, Crack Houses, Pre-Fabricated Homes

[Corey Kenney]

Properties in some parts of Philadelphia Pennsylvania and even properties in Camden New Jersey are dirt cheap. Most are boarded up run down, excuse the term “Crack Houses”. Can I just knock them down and put a pre fabricated home on the lot for rentals. Anyone have experience with this. I spoke with a new real estate investor that was looking to close on a bundle deal of these homes and he was told they could not provide the deed until “Licensing and Inspection” comes out. Has anyone ever heard of this? Is this area specific? He was told that these particular folks come out to tell you what MUST be fixed but only after you purchase them. I will make a new discussion if I have to but please push this to someone that has experience with this procedure.

[James Wise]

Originally posted by @Corey Kenney:

Properties in some parts of Philadelphia Pennsylvania and even properties in Camden New Jersey are dirt cheap. Most are boarded up run down, excuse the term “Crack Houses”. Can I just knock them down and put a pre fabricated home on the lot for rentals. Anyone have experience with this. I spoke with a new real estate investor that was looking to close on a bundle deal of these homes and he was told they could not provide the deed until “Licensing and Inspection” comes out. Has anyone ever heard of this? Is this area specific? He was told that these particular folks come out to tell you what MUST be fixed but only after you purchase them. I will make a new discussion if I have to but please push this to someone that has experience with this procedure.

 Gotta be careful with this strategy my man. If you put a new build in a blighted area like that the cost to build could be much higher than the value of the property. This only works with a decent amount of scale. if you can pick up entire blocks you may be onto something but one random new build here or there in the hood is not a good use of your time and money.