Investor · Los Angeles, CA · Member since 2019 · 8 posts · 12 votes
Hi everybody!
I thought I’d turn to the forums because I saw an interesting deal, but there’s some red flags.
Since I’m relatively new to real estate, I’m hoping some more experienced people can guide me in the right direction.
I found a deal for a 4-plex out of state listed at $39,900. It’s been on the market since January 2019 so I feel like it could easily be bought it for around $25-$30,000 or even less. The property details list that each unit rents for $475/mo. It sounded too good to be true.
Here come the red flags. It’s in a class D neighborhood and supposedly one of the most dangerous areas in the state and the property is in “distressed condition.” I know that it’s highly advised against investing in class D neighborhoods.
If somebody could give me some advice on what to do I’d highly appreciate that! Thanks so much!!
Here's what I get concerned about with this types of property. If you fix it up and sell it, who is going to buy it and for how much. If you fix it up and rent it, how much are you going to spend every year repairing stuff that your D class tenants broke.
Ok so I am curious from you all, if the circumstances were somewhat different, and he was able to find that Sam class property 20min from where he lived, what kind of advice would you give then?
Ok so I am curious from you all, if the circumstances were somewhat different, and he was able to find that Sam class property 20min from where he lived, what kind of advice would you give then?
@Ali Boone THANK YOU. Many of is must start in areas where we can build a portfolio as some of us have capital, not enough for the locale where we reside, for what we're trying to accomplish at the present time.
Absolutely. I'm in LA so I run into the same problem. And sometimes though it's not even just about not having the capital, but it's about chasing the better deals. High-priced markets aren't always the best ones. You're welcome!
@Frank Wong Well, in this instance I would want more information from the OP, so that I could give them my best assertion. The numbers they're quoting have promise though.
Apologies if I came across as antagonistic in my previous response. I get on here infrequently, and your initial response to their question just seemed unnecessarily abrasive. I do appreciate bluntness though, as anyone that knows me would attest to.