Hello everyone! I just thought I'd post a little update on my progress so far in attempting to find my first deal.
Like other new investors, I'm planning on using the fha program to owner occupy a multi family home.
Today I went to go see a three unit building in Naugatuck, CT and was I in for a big surprise! Nothing seemed to be like the descriptions and pictures of the place that I had seen prior to actually visiting the property.
From the pictures I had seen, there was some work that needed to be done sure, but it seems like they were strategically taken to make it seem like there was much less work to be done than the reality!
There were holes in most of the walls and in the ceiling, the basement was unfinished and there was literally just dirt down there. I could see footprints from people who had walked through previously!
The entire building was extremely cramped (though it seemed more spacious in the pictures too), and some of the windows were broken! I know that for people on bp these might not be the biggest problems, but all the work and repairs that need to be done to the place were a bit too much for me on my first time doing this.
Also, I'd like to be able to go into a place and have rentable units right away. I'm not kidding myself into thinking that I'm going to get the best place in the world in my current situation, but I'm also not going to bite off more than I can chew just yet.
Either way, that's my little status update, thank you for reading. I'll be sure to post about any other significant occurrences on my journey.
Keep you head up @Blake Williams . If you're discouraged at the shape the house is in, most likely so are others. You've gotta look at the long run though and see the potential. You may be able to get a reduced price and fix your unit that you plan to live in or go for a 203K loan and fix everything at one time.
We passed up a house that all the walls were crumbling, dirt basement, outlets in floors, old fuses, etc..To top it off, it had just snowed and I about got stuck trying to find the drive which sloped down. That was the cherry on top.(we did not use the drive) The place sold and I imagine they got a great deal, but as a newbie as well, it would have been a bit overwhelming. Keep looking. We did get a sfh. It just needs the bathrooms updated, new kitchen floor and fresh paint everywhere. That, we can handle.
Oh, I forgot to mention, the house we got has a great accessible driveway. It will be much easier to rent out.
Originally posted by @Blake Williams :
Nothing seemed to be like the descriptions and pictures of the place that I had seen prior to actually visiting the property.
Sounds about right. Real Estate sometimes goes by the name "Creative photography"
Don't want to make too much of a joke out of it - but it's not uncommon for a seller or agent to make a real dump look real good. Had one last week that looked like a dump in the pictures, but in reality it was a complete sh*thole, TONS worse than I could have ever imagined, even for that part of town. Not even fit for a squatter.
Don't sweat it. There will be another deal out there that's way better than that one - or maybe you just need to work that deal differently. Often times a bad deal can be turned into a good deal with strategy, creativity, or price.
Keep at it! You got it! Lets just say we saw alot of true dung to find our first diamond in the rough! If it was easy and stress free real estate wouldn't be hidden gold! Keep looking and look hardest at the ones with the crapiest pictures! those are the ones that can turn into amazingness. Because people will look at the great pictures and ignore the crapy ones ;)
Thanks for the encouragement everyone! I definitely won't let one setback deter me! I'm planning on setting up more visits soon!
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