I found a potentially great short sale deal and am calling on your collective advice. The house is in a great neighborhood with a pretty good school district. There's plenty of room in the numbers rehab and flip it. My concern is...it's right next to a major highway. It's separated by a sound wall, and everything looks very nice. In the 5 months it's been listed, the price has dropped by 40%.
I'm concerned about holding costs in the event it takes a while to sale. Has anyone flipped a house near a major highway? What was your experience in getting it sold? Thanks.
I posted something similar a few weeks back. I'm personally not a fan as it's external obsolescence but for the right price I'd go for it. It will limit your buyers...
I agree with John. If the price is right it's still a deal, just lower your ARV accordingly. Only you will know if that's 8k less or 30k less.
This is a pretty market specific issue. In one area of Denver there are extremely expensive super fancy new builds right overlooking the highway that sell like hot cakes. But in most instances, highway noise is big minus. I think you'd really have to rely on your local comps for the neighborhood to figure out how much effect this will have on your deal
Jean Bolger, 33 Zen Lane | http://www.solidrealestateadvice.com
@John Voirol I would try very hard to find comps with a similar issue - that's about the only way you could get close to an accurate value.
Adrian Tilley, Live Oak Properties | [email protected] | 720‑943‑4403
Thank you all for your input. I found it to be very helpful.
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