I have 5 adjacent properties that I've been thinking about getting under contract for a wholesale deal. They were all vandalized, copper stripped, and they are all in a warzone. I'm looking at possibly getting the properties for around $20k total. The comps are on the low end ($30k) but they would be perfect for a low end landlord. The question I'm asking is, do you think this is worth the effort since the rehab would most like cost a lot due to the copper missing and other stuff?
@Chaz Reid - Are the $30k comps in need of a major rehab or are they finished?
Just don't replace the missing copper with more copper. That happened to us during a vacancy. It was all replaced with Pex(?). This is a 4/2 house and the copper parts on the boiler and every radiator were stolen too. Cost about $1700 to re-plumb the entire house and there was no other damage.
Pex. They won't steal that.
, they need major rehab
You can replace the plumbing with Pex.
You be the judge of whether the properties are worth buying or give us a more specific idea of what the properties are looking like and what work needs to be done.
Id the properties need dry walling, etc it can cost a bit and I am assuming its in a bad location demographically but if you already have a house in the area then you know the location and you can check on multiple tenants at the same time and place for repairs and such
It really comes down to estimated cost to repair and estimated income value. Assume that the rentls will fetch the same price as your current rental and use that to see if you can get at least 10% profit within the first year if all the properties are occupied for 12 months.
Good luck! I wish you best of luck in all of your endeavors!
When I was younger in connecticut I knew of many people that stole copper(rediculously good money in it) There was nothing that would really stop them accept there being no copper to steal. Because the pipes would freeze in the winter you need pipes to be strong enough to not burst. here in Florida everything I have seen so far is PVC.
I know the NC is at mid point and I believe you do have winters so will have to check it is code violation to use PVC piping. At $20k for a rental I don't really see how you could go wrong. Personally I war zones, there is not to much appreciation in the property. but the prices are usually cheaper and the rehab is less demanding. For rental properties they is more profit in it & really it all comes down to screening the tenants. I say go for it
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