Boarded-up/off the market property- Florida

Boarded-up/off the market property- Florida

Rental Property Investor Ā· Winter Haven, FL Ā· Member since 2020 Ā· 2 posts Ā· 0 votes

I have my eyes set on a duplex 2/1 that appears to have been boarded up for a few years. Is it ever a good decision to buy property in this condition?

What would be the cost associated with gutting out the entire property. Not even sure if this question could be answered! 😩

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Real Estate Professional Ā· West Palm Beach, FL Ā· Member since 2012 Ā· 23k+ posts Ā· 13k+ votes
6y

First issue is can you actually buy it. Most of these have title issues, are under water on the mtg, etc. 

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  • Wholesaler Ā· Costa Mesa Ā· Member since 2020 Ā· 3 posts Ā· 1 vote
    6y

    I'm in California and I can do an entire rehab and landscape close to 120k (for about 1400 square ft.)

  • Real Estate Professional Ā· West Palm Beach, FL Ā· Member since 2012 Ā· 23k+ posts Ā· 13k+ votes
    6y

    First issue is can you actually buy it. Most of these have title issues, are under water on the mtg, etc. 

  • Austin, TX Ā· Member since 2016 Ā· 160 posts Ā· 39 votes
    6y

    boarding up is likely not the most serious problem, the problem is that this property have been vacant for years. Why was this property not being able to be sold is the main question you will need to figure out. This will ultimately tell you the true price of the property. 

  • Realtor Ā· NY Ā· Member since 2020 Ā· 167 posts Ā· 169 votes
    6y

    @Nicole Vincent, cost may be the least of your issues, is it condemned? do a thorough due diligence before jumping in, assume the worst, assume its a gut job or a tear down and estimate a such.

  • Rental Property Investor Ā· Boca Raton, FL Ā· Member since 2018 Ā· 24 posts Ā· 5 votes
    6y

    @Nicole Vincent, i dont want to rain on your parade, especially as i havent seen the property and make my comments based on assumptions and personal experience, BUT... additionally to all the great comments ahead of mine;

    As this is in Florida you also want to think about the strict building inspections when rehabbing. This could become a money pit if you don’t put a real seasoned inspector on this beforehand. I have seen it too many times that a building inspector finds existing code violations during construction and/or deficiencies that need to be fixed to close the permit out. If you cant close out the permit this could really be an issue when you try to sell it later. Opening an old permit and prove the issue is fixed years down the road will be a nightmare.

    There could also be possible extensive termite damage that could have occurred over these years it was vacant. Of course i don’t know if its a wood frame house or CMU/stucco but if its wood frame the insurance alone could kill you on an older property or you cant even qualify. Even with upgrades to hurricane impact glass etc. to potentially qualify for insurance may not even make sense if the existing structure couldn’t hold the window in place during a storm. ā€œDon’t want to put impact glass into a house made of sticksā€.

    Either way, i like the way you think out of the box to find overlooked opportunities. Just make sure you do your due diligence with inspections and inquire about insurance.

  • Rental Property Investor Ā· Winter Haven, FL Ā· Member since 2020 Ā· 2 posts Ā· 0 votes
    6y

    Thanks guys for the great in sight and suggestions. 

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