What do you think of this property?

Question

Hi everyone,

I sent out some direct mailers a few weeks and got some call-backs! I know. I'm shocked as well. One of the call-backs piqued my interest because I believe I can get a good deal out of it and I wanted to gather your opinions. Here are the basics of the property:

• Huge duplex at 3109-3111 Ruckle St. Indianapolis. 
• each side is 2bd (upstairs), 2BA, large dining and living rooms (separate)
• vacant lot next door on the corner
• near some revitalized areas
• seller has 100% equity

The main drawback of this deal is the property is a complete mess. It likely needs to be torn down to the studs and rebuilt from scratch. The seller's ideal price is $24k but I'm 100% I can talk him down from that. ARV seems to be in the $60-70k range given the neighborhood. Here is a zillow link:

http://www.zillow.com/homedetails/3109-Ruckle-St-I...

How would/should you play this potential deal?

Thanks in advance to anyone out there in BP land who has some guidance to offer. I'm really looking at better neighborhoods to invest in but for some reason I found this deal attractive and interesting.

Cheers,

Bryan

Bryan Ghorbani · Answer

Hi Phil!

Thanks for the reply :)

Judging by the amount of issues with the duplex, it would take around $40-50k to get it up to rent-able status.

I could be better off either wholesaling the property to someone else at a cheaper price, or knocking the whole duplex to the ground and soliciting the owner of the vacant lot next door and then I would own a huge plot of land in an urban area.

I think BRRR'ing this property would be out of the question. On that block, I would guess rent would be $400 a month each side. There are many boarded up/abandoned homes in a 1/2 mile radius.

Bryan Ghorbani · Answer

Hi all,

Here is the updated listing from Redfin. I had negotiated the seller down to $17,500 and was in the process of getting the place under contract before he called me to say he decided to go with an agent :(

https://www.redfin.com/IN/Indianapolis/3109-Ruckle...

given the neighborhood, I'm not sure if it was a good deal unless you could Section 8 the property. One of the sides turned out to actually be a 4bd, the other was a 2BR.

Jayne Overbeck · Answer

I checked out your link and doesn't look like it's on the market

Chris Wood · Answer

^^^^ I am curious too….

Chad Morales · Answer

Probably a little late for input, how did this turn out?

Phil DuChamp · Answer

I think the missing component would be, how much do you have to put into it to get it to your target ARV?

What is your plan with it?  Wholesale?  BRRR?