I checked out a condo unit last night. This is one unit of a side-side duplex. Located city of Malden Massachusetts and so far is not Listed and being sold as a Private Sale. This may change based on how much time the owner wants to wait while trying to sell it. Owner asking $330k, built 1991, only one owner and needs tons of updating. Three levels (Basement, Living/Kitchen, Bedroom), three beds, 2 baths, off-street parking for 2 cars. The basement has been modified to add 2 additional bedrooms and 1 additional bath but I'm told these have not been permitted by the city. It's too rich for me due to the rehab costs needed. I'm looking for ideas or advise on what I can pursue with this now on my radar screen. For example, maybe I can try to capture the deal as a wholesale opportunity, or maybe I can go in on the project with a partner investor who has the capital for the rehab costs, or maybe I can introduce the owner to a broker and earn a finders fee. Not sure what may be a good strategy before I simply walk away. I also learned that the property is not properly setup with a HOA and there has been conflict with the other owner about maintenance costs. My initial idea was to check out the property as a possible long term hold for rental income. My estimate for rent is that this unit can earn $2200/month.
I know the asking price is too much. I'm not in a strong position to make an offer because I can't predict the rehab costs. Any thoughts on how you would look at this as an investment opportunity or pursue a potential deal? Or, does it sound like a bad deal and just walk away? I have not met the other owner but since the HOA is not properly setup and there has been conflict in the past I also fear an on-going problem with the over all property maintenance (landscaping, snow removal, etc.)
@Frank Rosatone $330k for a condo in Malden that is need of rehab does not seem like there is much meat on the bone to make any money. Sure, I haven't seen the unit, but I know Malden fairly well and that seems like it is priced way too high. Also, it is against the law for a broker to pay a referral to you if you aren't licensed.
You've got the right mentality but it just seems like this deal might be off the mark. Good luck!
Hi Justin, Yes I think we're on the same page. thanks for the 'heads-up' about my idea of trying to earn a referral fee. The owner told me that she was told by other real estate agents that the unit should sell for $330k. I think this is fishy and probably over promising based on what I observed for needed repairs to bring the property up to current standards as a rental. My plan is to inform the owner that I will pass on the opportunity but keep the door open in case we can consider the property again at a different price. I guess I can always make an offer at a price that I think would be worth my time and effort to focus on the opportunity but it will have to be significantly lower... tbd
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