Hello BP friends!
What’s been your experience with flipping a good deal in a questionable neighborhood?
In the past we have done quite a few like this. We pick them up in foreclosure or the tax lien auctions, admittedly most are in bad shape & the n'hood is +/- C. We then hold them CFD for investors we know & who know how to run them. We prefer 2-3 units as it has the higher /door income potential for our 'clients'.
They do ALL the rehab on their dime & then will eventually get financing, if the property & their financial situation passes/meets conv. financing constraints, or based on their several years of payments we convert the financing to notes @ 12-13%. Some have paid us off & then moved onto other properties we have in play. In 30+ years we have only had to foreclosure once & we repackaged & offered it to those we know. Some investors declined it based on the n'hood but one young couple grabbed it, rehabbed it completely & we immediately doubled our income stream on it.
We have a few dating back 15 years, all direct deposit & running well. One of our 15 yr clients, (16 doors), only has 1 bad tenant during the covid debacle & that tenant was a family friend !!!
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