Updated over 12 years ago on . Most recent reply
Great Neighborhood - Horrible Street - Triplex
So I am about to put an offer in on a great REO Triplex priced well below market. It must of been renovated by the previous owner before they defaulted. It is ready to rent other than a few minor repairs and maybe some paint. But there is obviously a problem or why would I be making a post....
The property is located in a neighborhood that is probably one of the best rental markets on the east side of cleveland. It has a pretty decent school system, colleges near by, and a couple of popular bar districts.
BUT this property is located on a terrible street, and I don't mean its located on the wrong side of the tracks, and the whole section of the neighborhood is bad. Its literally just this street is bad. It is the only street in the neighborhood that is all duplexes/triplexes. I think the fact that the street has been all rentals for many years is the cause. The other properties are not in the best shape cosmetically since they are all rentals.
The numbers on the deal are great and the ROI is good. What do you guys think about investing in a property on a street that you know can't get any worse, but will probably never turn around?