Facts are facts.
Fear around pitbull is created out of real stories of owners, neighbors and children being seriously harmed or killed. Renting a duplex with five pitbull running free next door will be impossible, unless you target pitbull owners. I would not approach the neighbor to talk to them. Someone who owns five pitbull and is breeding, is very unlikely to be friendly about the subject.
@Mitchlyn D. I would use the inspection contingency to escape the contract. Don't even mention the dogs or you could have trouble getting your deposit back. When they ask for specific reasons on the inspection, just state the property was "not the condition you thought it was". You have no obligation to provide any more detail than that.
@Mindy Jensen That's exactly how I felt where the bones of the property were solid but just that one pitbull issue. Sigh.... Anyways, I'll have to regroup.
@Mitchlyn D. Sounds like a D class neighborhood not a C 😂
You know what to do or you wouldn't have asked. The numbers will stop working REAL fast if anything goes wrong. Remember it's not you, its the tenant. Any dog that gets out or barks at all hours of the day and night is going to very rapidly be your headache one way or another.
@Joe Splitrock Can't dispute facts. I won't mention the pitbull issue since it's not apart of the unit.
@Scott Kimberly Agreed but It's always good to get a second opinion which is why Bigger Pocket exists.
Weighing all options and angles.
@Bryan S. I don't think so. I've been in worst areas where my spidey senses were tingling but not in this section of town.
@Pavel U. I understand.
@Gagan Hurria Peace of mind is worth more than money.
What’s the rental demand looking like? If your gonna be at the bottom of the rental pool that’s an issue.
It’s cash flowing $700 a month that’s legit. Best case scenario he gets use to the tenants. Worst case call a code enforcer.
If it makes dollars it makes sense.
Dog barking short term issue.
It’s a rental.
In my city you can only have 2 dogs unless you have a breeders license.
@Irving Cham I can see your view. I think it would bring a smaller pool of tenants potentially. Hard to determine.
@Ian Boyd Yeah, I know there has to be a rule somewhere which isn't being followed.
your in Jacksonville investment market booming rental market is getting crazy over there. I wouldn’t tell you to pass on a deal when it could be fixed with a vinyl fence. Not sure about your housing stock or the area. I tend to think long term for long term investments. What’s going on in that area? What your equity position in the property? Just think big picture.
Invest in Additional life insurance....
@Mitchlyn D. Call the town. Every town has an ordnance.
What would you do if these idiots moved in next door AFTER you purchased the property? If the numbers are that good, I'd buy the duplex and work with the city to get those dogs outta there.
Mitchlyn, one of your own replies was spot on. Peace of mind!!! What is a couple hundred in extra cash flow a month worth vs. losing sleep worrying about your tenant’s kids being bitten and/or a possible lawsuit?
As an investor, This is not about the dog breed, it is about an observed risk that you saw with your own eyes.
Risk vs Reward. In this case, sounds like the risk is higher than any anticipated/planned cash flow. And to Jay’s earlier point, what if the real cash flow ends up being even lower due to vacancy/lower rents.
I’d think hard about passing on this one and saving your funds for the next opportunity. As an investor, separate the emotion and focus on the numbers and the risk.
@Mitchlyn D. I would not want to live next door to 5 of any kind of dog I love dogs but that is excessive. I would keep looking and invest where I can have some peace of mind. I think you would need to disclose to the tenant that the neighbor has 5 pit bulls that roam freely around the yard and occasionally escape. Can’t imagine a tenant saying OK no problem with that
I’m an owner of a pitbull mix with mastiff, two of the most feared breeds mixed together. Although I’m a lover of these breeds I will say the owner of these breeds 100% count!
There are true dangers and especially these backyard breeders make these dogs unstable. You have to be aware of how many times this person has breed his female to include if they are interbreeding which makes it worse!
I will NEVER own another breed. This is the breed for me BUT, I’m a very responsible owner that is consistently working with my dog to be good around people and other animals.
I wouldn’t want to live next door to this person. Highly likely that these dogs are unstable and will bite . Just being a dog lover it would make me sick that they were consistently breeding and selling.
That is what they call an external obsolescence. Imagine the complaints you’re going to get from your tenants. Complaints that you can’t correct; you can’t force the person next door to get rid of their dogs, sell their property or kick out their tenants.
In my mind you have two options.
1) Pass and find another opportunity.
2) Buy both houses.
@Mitchlyn D. Is the next door neighbor a tenant or a homeowner. Having that tidbit would determine how I would handle the situation and play a role on my decision to keep or walk away. Also, most cities have ordinances on how many animals can be kept. Do a little more homework to determine if there is a workable so Kirin for you.
I would also check into your insurance as a lot of insurance companies won't cover damages/medical costs when it's a pitbull.
@Mitchlyn D. This is a tough call, makes me wonder if that’s why the owner may be selling. You can always ask the seller if the dogs next door have an impact on renting out the units. While they may not be forthright, you could potentially get a feel for how they answer. Especially if you’re able to ask face to face.
For me personally, if I was looking to rent and bring my children along, the dogs would be a turn off for me. You never know with kids, and if it appears they breed dogs, this could be something a renter constantly deals with.
Another thing to consider, are the units currently rented out? For how long? Could you talk to them and ask how the feel about the neighbors? This could help answer your questions too.
Wish you all the best!