Is Buying Site Unseen to Flip a Horrible Mistake?

New to Real Estate · Syracuse, NY · Member since 2020 · 7 posts · 2 votes

Hey folks!

I am a soon to be first time homebuyer plus I am moving 1,700 miles away from Syracuse, NY to somewhere in Colorado. I am moving my company there in September. My wife and I are flexible in terms of exact location in Colorado, we are looking for a single family fixer upper to live in for 1 year before we upgrade. Age 29. No kids. Budget $200,000 - $300,000. Thank you in advance for any information at all on buying site unseen. Stay safe!

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

I don't recommend buying site unseen unless it's an absolute steal. If someone listed a house for $100,000 and you knew the lot alone was worth that much, then maybe. I would at least hire a home inspector or contractor to walk through and look for major foundation issues or other problems that would kill a deal.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
I don't recommend buying site unseen unless it's an absolute steal. If someone listed a house for $100,000 and you knew the lot alone was worth that much, then maybe. I would at least hire a home inspector or contractor to walk through and look for major foundation issues or other problems that would kill a deal.
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Kata Walters
Rental Property Investor · Palm Desert ca · Member since 2016 · 101 posts · 72 votes
6y
@Wade Megan I’ve purchased all my properties without seeing them haven’t regretted it yet, sometimes it’s not possible to be there in person but with technology now you can do video walkthroughs , detailed photos , have an inspection of course and talk directly to the inspector in depth after he’s done, use an agent you can trust who understands your situation.
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Greg H.Pro Member
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Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
6y
@Wade Megan
I cannot stress enough......do NOT do this. This is your first purchase and therefore it will no doubt be personal. Additionally, you have plenty of time and have not even located a city as of yet. Take your time and visit some areas as locations vary greatly in Colorado. We have a place in Grand Junction that we spend more and more time at. We love the weather, the outdoors and the ability to play golf almost year around
Many on here will tell you it is ok to do so. In 30 years of flipping houses, I have done it less than a handful of times. But again, it is not personal to me as all that counts is the $$$$
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Stone Saathoff
Investor · San Antonio, TX · Member since 2019 · 576 posts · 307 votes
6y
Buying sight unseen is more of a pro move, if you have some way to see the inside like a video walkthrough, have a contractor you have a relationship with walk it, that is one thing. I would be hesitant to buy something you haven't had the opportunity to see the inside of at all.
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Bob Prisco
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
6y
@Wade Megan simply have someone you trust walk through for you, Of course do not buy without anyone looking at it, yes that would just be dumb! We have purchased many props without getting inside, but still did walk around .
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Account Closed
Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
6y
Yes.
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Bruno NunesPro Member
Flipper/Rehabber · Pompton Plains, NJ · Member since 2019 · 39 posts · 36 votes
6y
I’ve purchased a few properties site unseen but I had experience buying multiple properties before I ever did that. I think the most important thing to know is the market your buying in and to have either boots on the ground in that area or to hire a home inspector so you can at least know what your headaches will be when the renovation starts. If you haven’t purchased a home before I don’t recommend this rollercoaster ride until you've had more experience or at least work with someone that does.
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Mike B.Pro Member
Developer · Chicago, IL · Member since 2013 · 435 posts · 358 votes
6y
As a general statement I'd say not to buy your first property site unseen. If your team can show you that they can execute on purchase, rehab and exit... only then will they have built the trust to make a move like that.
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Marshall M.
Washington, DC · Member since 2015 · 81 posts · 49 votes
6y
Just put it under contract site unseen. I've done this numerous times. You can always set up your contract's contingencies so you can kick out if it turns out you don't like the property. If you can't make it to the property in person within the inspection period, just send your agent and an inspector to check it out on your behalf and let you know whether to move forward. If you're feeling cheap and don't feel like paying an inspector try to get someone from TaskRabbit or Craigslist to take pictures and video for you. Just some thoughts! Good luck!
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
6y
I've been flipping for 20+ years. I would not do this.
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Adam E.
Fairfield, CA · Member since 2019 · 74 posts · 31 votes
6y
One of my close buds has done dozens of wholesale deals sight unseen because he lived in the market his whole life. His buyers however would get inspections done and check them out to make sure his estimates worked. Parts of it can be done with a lot of experience, but don't take any unnecessary chances. Good luck!
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Lee Bell
Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
6y
Don't do it.
Pick a city or area first.
Then house shop in person.
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Teri Feeney Styers
Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
6y

@Wade Megan this post makes it appear that you are looking at options all over the state - but I think I saw a previous post by you that said Colorado Springs. I'm in Grand Junction. Your price range would be pretty easy to fulfill here; and as @Greg H. mentioned, we have wonderful weather (much better than the front range) and outdoor amenities if that is important to you. Also, a ton of Opportunity Zones and other incentives if your company will be hiring.
With the current COVID restrictions Realtors are having to get more creative in "showing" properties. I sold a house earlier this month where the out of town buyer had never set foot in the house. But a friend did a Facetime walk thru for her and I took some very specific pictures and met contractors to help with bids and of course there was a property inspection too. It can be done with the right team and the right people who know what to look for.

Would I buy a flip and manage the rehab from afar - never seeing it? No - but you intend to be here.
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Thomas Hundtoft
Rental Property Investor · Grand Junction, CO · Member since 2019 · 57 posts · 34 votes
6y

@Teri Feeney Styers Stop trying to sell Grand Junction lol. GJ is a horrible place, meth heads everywhere, tenants that don't pay rent, horrible weather, and smog with mean dogs.
Thomas Hundtoft
Grand Junction, CO
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Teri Feeney Styers
Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
6y
@Thomas Hundtoft we also require everyone to grow their own food and sew their own clothes. If you want new shoes you have to kill the cow yourself. God forbid if you don't cut enough firewood for winter... you'll be awfully chilly come Spring - which arrives in late June.
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Wade Megan
OP
New to Real Estate · Syracuse, NY · Member since 2020 · 7 posts · 2 votes
6y
Fantastic thread. Thank you for the responses, much appreciated! It made me realize the importance of the team you have in place, the protection that you can have as a buyer and the potential game changing risks.
Can anybody elaborate on the Colorado weather?? I have seen mentioned seemingly significant differences in climate. It is all a little confusing for a ROOKIE! Thank you in advance for your insight.

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Kevin Grinstead
Realtor · Denver, CO · Member since 2016 · 499 posts · 129 votes
6y
@Wade Megan Colorado weather is amazing. If you are in the city it is pretty moderate. In the winter you can have snowy days and then the next day it can be in the 60s. In the summer there is about one or two weeks that temperatures are over 100's but dry and mostly comfortable.
If there is a property here you are interested in, besides virtual tours, you can have it inspected and have an agent video call you and tour the home while having an inspection done.
Currently during the stay at home order houses cannot be shown. Inspections can happen if the property is under contract.
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Bill S.Pro Member
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Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
6y
@Wade Megan so I think the more critical thing is to pick an area. Doing that sight unseen is the challenge in my mind. Buying real estate (a house) can be done without ever setting foot in the state with relatively low risk. Hiring a contractor and getting your arms around a rehab without ever having done it will be much more challenging.
Weather wise. Leadville is something like 11,000 ft in elevation. There is lots of very cold and snowy weather there. Pueblo is nearly in the desert and in the South part of the state. It's much warmer and dryer there. Great variation in climate in our state. Pick your area, then worry about the house.
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Darren Smith
Rental Property Investor · York, PA · Member since 2013 · 101 posts · 30 votes
6y
While riskier, buying sight unseen can be done. Trick is having someone you trust to walk the house. Since you likely don't know anyone in the area, the only way to confirm credibility is online reviews and speaking with previous clients. Search for realtors who've closed other houses in that area and research them. They should be able to give you excellent advice, as well as set up any inspections or get any pictures you want.
We wholesale properties every month to investors who never see the house, but that's because we take quality pictures and video, as well as disclose every negative we're aware of. Your realtor should be able to do the same for you. Best of luck!
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