I bought a rundown house for 4k. What are my options?

9 Replies

I bought a house for 4k that needs to be completely renovated. The comps for the year, size and neighborhood is around 25k and I've gotten a couple quotes for the repairs which would be around 15k. What are my options? I've got either renovating and selling/renting, making no repairs and selling it as-is, or leasing and having the tenants make repairs and then own the property. I think I got a good deal but I dont see any houses near mine selling. Any tips on what I should do??

I agree with @Jay Hinrichs . Clean up the debris, mow the lawn. Take before and after photos for you"deal diary" and sell for what you can. Don't spend a dime on polish trying to put shine on a penny.

Clint 

In my market I would owner finance that out.  Get your $4000 as a down payment and tote the note.  It allows some one an easy way in to a first time home and you get your money back to do another deal.

Originally posted by @Ron Flatt Jr :

In my market I would owner finance that out.  Get your $4000 as a down payment and tote the note.  It allows some one an easy way in to a first time home and you get your money back to do another deal.

 I was thinking the same thing... until I saw that the house next to it is vacant and blighted, too.

Hopefully a full title and utility and tax and permit and code violation search was done? Or was this a quitclaim  on the hood of a car deal?

Sell immediately if no searches were done. Get what you can, do full DD next time.

What was your plan/intent when you purchased it?

My intent was to pretty it up a little and flip it for 7-9k. I just wanted to know what all my options were

I am thinking the same thing as @Steve Vaughan said "Hopefully a full title and utility and tax and permit and code violation search was done? Or was this a quitclaim on the hood of a car deal?"  

You seriously need to get answers to those questions, or you might find you bought a huge debt pile.  Normally I would say do a cheap fix up and turn into a rental.  From the sounds of it, you picked up a hood rat house, one of many on the street?  If so selling is going to be hard, you might not even be able to give it away for free depending how bad the area is.  

Do you actually own the property?  Not to be a smart ***, but do you have title to the property in your name filed with city/state, and was it sold by the lawfull owner?  You havent really given us much information as to what Due Diligence you have done.  

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Comps are $25k, but later in your paragraph you say no houses in the neighborhood are selling. If you can't sell it than an ARV doesn't matter. I would be advertising it trying to sell it, and put as little in as possible in case you simply can't sell it.

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