Rental Property Investor · Alexandria, VA · Member since 2019 · 44 posts · 8 votes
Hello good people!
First let me say I don't have much experience in real estate but I'm open to learn and grow, and I know this is one of the most used paths for financial freedom. Anyway here's the deal it's a 3br 3bath townhome in NC asking $95,000 made an offer for $88,000 and it was accepted, they want a $5000 deposit and no inspection. My realtor went out and got video of the property and from the looks of it it's in pretty good shape there are minor issues like paint, a small dip in the floor, cracked window, oh out front there's roots growing up around the driveway (which I know could cost a pretty penny to fix driveways) but I'm not sure if there's any foundation, electrical, or plumbing issues. Being that this would be one of my first deals would you recommend taking on this deal? Also it would be a buy and hold and I could get from $1000-$1200 rent in that area.
No Inspection is always bad, "Inspect what you Expect".
Also, what is the value of other homes in the neighborhood at their very best condition. Your offer price may still be too high. Collecting $1200 a month on a townhome with 3beds and baths makes me wonder about the condition of the neighborhood is. There may be better deals out there with less red flags. I understand the market is high but you still don't want to overpay.
Rental Property Investor · Alexandria, VA · Member since 2019 · 44 posts · 8 votes
5y
@Bruce Woodruff haha I think I'll be that way too being that I just went to visit a home in VA that was "renovated" I want to offer about $30,000 less than asking.
Rental Property Investor · Alexandria, VA · Member since 2019 · 44 posts · 8 votes
5y
@Justin Gottuso WOW you got a really nice first deal! Send some of your good luck potion my way ;) I wish it would be worth $160k all fixed up but no maybe $110k. Thanks for your advice
Insurance Agent · Concord, NC · Member since 2016 · 46 posts · 41 votes
5y
@Jaquette Green Hi Jaquette! I’m in a similar position as you; I don’t have my first property yet, but I have made an offer but it was declined.
That being said, I ALMOST made a townhome offer last month up in Hickory and fortunately I asked my agent about their HOA bylaws regarding renters. Come to find out, they were no longer allowing rentals in that community and that info was not disclosed; so I would have been stuck with a property that I couldn't rent as my first investment.
I’m not an expert but wanted to share my dodged bullet on this townhome in case you hadn’t considered that possible hurdle.
Real Estate Agent · Chicago, IL · Member since 2016 · 21 posts · 10 votes
5y
I didn't inspect my first deal. For the looks if the property I assumed it was a total gut rehab, and it was. Bought cheap $30K sold for $135k. I was aware and had the budget for all major components, if you are ok with that then go ahead without an inspection, the thing that would stop me the most is the ARV, that's the biggest issue for me. Rents are not a a problem, but if I'm not able to get my money back in form of equity, is no deal for me!
Rental Property Investor · Alexandria, VA · Member since 2019 · 44 posts · 8 votes
5y
@Jordan Thompson OMG thank you I didn't know that was even something an HOA could do. I now know I need to do my due diligence before I put in an offer.