Would you recommend buying next-door property?

[Maria G.]

Hello,

I am a small investor. I have a SFH that has done well and my tenants (whom I really like) told me that the next-door neighbors are preparing to sell. They have a sign that reads "coming soon" (not sure what that means), but I don't see it listed on zillow/redfin yet.

It sounds like a good idea to buy a property side-to-side with the current one--I already know the area, the neighborhood, I reduce the risk of bad neighbors, etc. But perhaps I am not seeing something that I should? If you have done it before, do you have any specific advice? Unfortunately, I would be paying 50% more than I did 5 years ago for the other property, but that's everywhere in the area...

Thank you!

[Dave E.]

@Maria G. Really the only thing that matters is do the numbers work? It’s good that you already have insight to the area, and even have some tenants looking out for you. Just make sure the numbers work and put in an offer that makes sense for you before it goes on the market.