Rental Property Investor · Doylestown, PA · Member since 2008 · 1k+ posts · 1k+ votes
10y
Hi @Sara Furlong - sitting on the market doesn't mean it's "bad" just bad for that price. I bought an apartment building that sat on the market for 2 years at $750K. I bought it for $525K. At $750K it was not a good deal. At $525K... with a lot of rehab, it has become a very good deal for me. So much so that some of my investors now want to do bigger deals and get equity instead of 10-12% interest. Run the numbers, add in some padding and make an offer.
Real Estate Agent · Berlin, MA · Member since 2013 · 130 posts · 95 votes
10y
If it hasn't sold yet then the price is too high. Regardless the situation or condition of the property there is a price at which it would sell quickly. The key is to find that and convince the seller it's accurate. Run the numbers, what will the renovation cost be, what can you expect in reasonable rent, how difficult will it be to manage, what costs, and if it fits your criteria then make an offer. Offer low and make them counter. It's approaching four months with no movement so take a shot.
Rental Property Investor · Doylestown, PA · Member since 2008 · 1k+ posts · 1k+ votes
10y
Hi @Sara Furlong - sitting on the market doesn't mean it's "bad" just bad for that price. I bought an apartment building that sat on the market for 2 years at $750K. I bought it for $525K. At $750K it was not a good deal. At $525K... with a lot of rehab, it has become a very good deal for me. So much so that some of my investors now want to do bigger deals and get equity instead of 10-12% interest. Run the numbers, add in some padding and make an offer.
I just got an offer accepted this morning on a HUD property that has been sitting at too high of a price..... I "watch" properties and for prices changes...
The lowering of price can happen for any number of reasons, again, the primary is probably it's priced to high (as stated) AND it's possible the seller could be in a place of hardship...
Might do some additional digging into Title, mortgages, google his name re collections.... all that kinda stuff to see what you can dig up....
Investor · Charlotte, NC · Member since 2015 · 183 posts · 146 votes
10y
Sara Furlong Interesting, it's For Sale By Owner, it's 4 apartments, and the Truila listing says "Great income potential". Hmmm, why is it only potential? It's a FSBO so ask the owner for rent rolls or prior year Schedule A from their tax return and see if it has "potential" or is a dud, but at $115k and four units, it should cash flow.
Banker · Perth, Australia · Member since 2016 · 14 posts · 15 votes
10y
Depends on your goals and your skill set. Typically it's great to make some money going in - so the worse shape the property is in, the better. Because once you remodel it (if that's what you'd do) its going to rent out for more money. However, if you're buying to just rent without improving it, there may be issues (which would explain the time on market). Personally Id love to find a property that I want that's been sitting on the market awhile - usually means there are issues that other people aren't willing to tackle or the units haven't been fixed up, etc, and that means a decent deal for us going in.
Have you run any analysis on it? How much could you rent for as-is? What condition are the units? What kind of return are you looking for? What are your plans for the place?