Updated almost 10 years ago on . Most recent reply
Investing in rehabbed meth houses as a niche?
Looking for anyone who might be successfully investing in rehabbed meth homes as a niche. I'm not looking for those to tell me to "run", or "be very careful"! Fortunately, due to my day job, I am all too familiar with the pitfalls of meth houses, the extensive amount of cleanup involved, costs, liabilities, etc... I have the contacts for testing and remediation, and I am very familiar with my state laws concerning disclosure. I am also very familiar with how clean a house can be made, given the right clean up crew and process used. And yes, I would live in a remediated meth house if I were the one in charge of cleanup!
But, when I look out there at our very active flipper market, I see one type of house with very little competition for purchase, the meth house. I'm looking to hear from those who have knowingly invested in and rehabbed these homes. Were they all REO, or did you get any from private sellers? Do you have a rule of thumb for a discount from ARV that you're looking for? 30-40% of ARV? Did you have to adjust you're ARV for the psychological stigma these houses have? Did your appraisers deduct? Did you choose (if not required) to disclose after remediation? And finally, was it worth it?