Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
The property I am currently doing due diligence on had a gas explosion a year ago. The particular structure involved is no longer on the property and the explosion was caused by a company digging in a nearby location. I have copies of inspections done on the remaining structures after the explosion which show them to be sound, except one which needs $15k to repair the pier and beam foundation. I have my own inspections scheduled two days from now. There is an ongoing lawsuit between a family member of the tenant who passed away and the company, not involving the property owner or the property. I have already determined that I like the numbers on this property and the location is excellent. It's just what I am looking for as my first investment, if it weren't for this issue. Anyone else ever continue with a property that had a tragic past? What was the outcome?
Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
12y
@Kim H. based on what you described, the gas explosion is irrelevant since it does not involve your property. So I would focus more on why the property is still available and ask the seller why he/she is selling. I'd also have a top-notch inspector review the property after you get it under contract.
Wholesaler · Saint Louis, MO · Member since 2013 · 336 posts · 54 votes
12y
@Kim H. Congrats on making the plunge for your first investment. I am still a newbie however are there any bad news, stigma's, or spoken negative's regarding this property by the community? If there is not, I would say move forward with your first investment decision.
Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
No quite the contrary. The current owner is a charitable organization who was using the property as a means for temporary housing to help people in need. They are well respected in the community and the property is currently filled with elderly folks who love their current landlord. I've spoken with the current tenants and their only issue is that they have to move. The property is well maintained and has been part of this community for over 20 years. Now obviously I will be repositioning this from its current use to a for profit venture so it will take some effort on my part to market it as an apartment complex. If there are negative opinions I haven't heard them. Doesn't mean they don't exist or that people won't want to rent there. There are other newer town homes that back to the property and they are full, with even more being built.
Wholesaler · Saint Louis, MO · Member since 2013 · 336 posts · 54 votes
12y
@Kim H. I believe you are in a good position to proceed with this property. I would comment in the morning so more experienced investor's can see the post and include their thoughts.
Also when you are replying to a message from a specific person, use the quote or the @name so they will reply to you specifically. Just an fyi
Real Estate Broker · Dallas · Member since 2013 · 116 posts · 10 votes
12y
Thank you @William T. Today is my decision today. Since my inspections are tomorrow and I will be spending quite a bit on them, I would like to feel very comfortable with my decision to continue, barring any unforeseen problems with the inspection. Hopefully others will comment with their experiences.
SFR Investor · Dallas, TX · Member since 2011 · 604 posts · 243 votes
12y
It sounds like the property was just "at the wrong place at the wrong time" and really had nothing to do with the incident.
If you had said that there was gas leaking in the building and that caused the explosion, I would be much more cautious, but I don't see a problem based on what you have said,,the property was not "at fault",,so unless there is some stigma attached to the property,,go for it!
Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
12y
@Kim H. based on what you described, the gas explosion is irrelevant since it does not involve your property. So I would focus more on why the property is still available and ask the seller why he/she is selling. I'd also have a top-notch inspector review the property after you get it under contract.
Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
12y
@Joe Fairless has it right. Make sure the inspector is aware of the history.
On other deals with issues, these are value add opportunities. Depending on the issues many properties can be turned around and become an asset to the neighborhood. The big question is, can you make it a deal? A lot of that could come down to creativity.