Just I saw this offered property description

Just I saw this offered property description

Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes

"I'll be accepting offers for the next two weeks. The best offer gets it. The property is being sold as-is with all it's faults, including two tenants and fleas. I will only be accepting cash offers.
Here's the GOOD, BAD, AND UGLY. GOOD: The property is located on 1.1 acres that is mostly wooded with mature trees. It also has a small creek flowing through it too. The land goes from basically the house to the next house on Burns Street and back to near the end of Tracy Street. The house is 3BR (all upstairs), one bath (upstairs), and is 1300 sq. feet. The laundry hook-ups are on the first floor. About four or five years ago a new roof was put on (architectural shingles), new 80+ furnace installed, new vinyl siding, new 100 amp breaker box and a new front porch. The house sits on the the corner of Tracy St. (dead end - one house) and this is also where you park...so low traffic. As far as I know, the electric, plumbing, heating, and roof are in good condition, but please do all your inspections of these systems. Yearly taxes are only $239/year.
Now for the BAD & UGLY: Unfortunately, the current tenants rarely pay any rent anymore (job problems). They did rent from me at $395/month trash included, where they paid all other utilities themselves. We currently do not have a lease, but you'll have to follow the laws surrounding the state of Ohio tenant rights. If you aren't familiar with Ohio laws for tenants, please consult a lawyer. You will be inheriting the tenants too...whether you keep them or evict them. The tenants have a house full of junk that will have to be dealt with. They had a dog and cat there running wild all over the house (not anymore, I believe). As the result, the house has lots of dog and cat feces laying on the floor. (watch your step). The pets have also attracted fleas throughout the house. DISGUSTING!
I am appauled with the filth that I've seen and refuse to clean it up. So I am looking for a buyer that is willing to get a great deal for a doing a little dirty work. In my lifetime, I've never had to deal with cat and dog feces and fleas...I'm surely not going to start now."

What would you offer for this propertie unseen? Seller have an asking price but I will wait until some replys come in.
Thank you.

-Uwe

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Most Popular Reply

Real Estate Investor · Rockaway Beach, MO · Member since 2008 · 29 posts · 8 votes
15y

I would tell them if they'll "GIVE ME" $10K I'll take it off their hands;)

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19 Replies

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  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y

    If it was in my area, I might go $10K-15K.

  • Lender · Fort Pierce, FL · Member since 2009 · 825 posts · 486 votes
    15y

    That is not my end of the business but I would say $10,000 would be my upper limit. If it were at a live auction, I would start at $7,000. My offer would be for the land.

    Depending on how long the tenants have lived there and the age of the house, this might be complete gut or tear down.

  • Wholesaler · Dallas, TX · Member since 2009 · 308 posts · 92 votes
    15y

    If they have not been paying rent for years, do they have squatters rights? (adverse possession)

  • Real Estate Investor · Rockaway Beach, MO · Member since 2008 · 29 posts · 8 votes
    15y

    I would tell them if they'll "GIVE ME" $10K I'll take it off their hands;)

  • Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
    15y

    With an estimated $10k in repairs and eviction costs, my maximum offer would be $4,654.99. Of course, that would only give a 16% return on a cash purchase. This is assuming you'd be using it as a rental at the current rate, not tearing it down and building 4 spec homes on it.

  • Investor · Buffalo, NY · Member since 2011 · 100 posts · 86 votes
    15y

    Chris,
    Disclosure: I am neither a lawyer nor familiar with the details of the Ohio tenant rights…
    However, I believe that as long as there was once an agreement to lease/rent the house between the landlord (owner) and tenant the issue of adverse possession would not apply. The property must be held hostile to the owner’s rights, meaning they couldn’t be there by permission of the owner.
    Also, they would have to be there for something like 5-15 years depending on the state law.

    Uwe,
    Found this general guide if it helps…
    http://www.tenant.net/Other_Areas/Ohio/tenant_l.html

  • Brian LevredgePro Member
    Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
    15y
    Originally posted by Chris Colvard:
    If they have not been paying rent for years, do they have squatters rights? (adverse possession)

    Adverse possession laws very from state to state but I don't think this would qualify. If the tenants are not paying rent, then I doubt they are paying the property taxes. On top of that, it doesn't sound as if they have improved the property any.

  • Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
    15y

    Cat and dog feces can be a major health hazard as it may contain a parasitic disease. A such, your going to spend a lot of money to replace all flooring plus any wood sub-flooring. Also, depending on the type of construction, you may also have to replace drywall and baseboards as cats will spray on the walls too. Lastly, your going to have to primer, paint or seal all concrete, plaster, doors, and cabinets.

    Fleas are a major concern too. Since you going to have to demo the flooring, your going to need to have a pest control guy come out and bomb the place.

    All of this, if you higher a subcontractor is going to be easily $5K as it will be a great deal of labor involved. I just got done with a similar job on a single-story and it was $4K. Yours is a two story and I can see it going higher.

    In my experience, you have got to budget $10K minimum for rehab. In gross rents, this means it will take you two and half years just to recover your rehab costs. With a $10K purchase price, your looking at 5 years minimum.

    I think this is a pass.

  • Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
    15y

    Thanks for all your reply´s. Seller want only $3k for it and here is a photo.
    Have to see what can be done.

    -Uwe

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y

    Gotta be a way to make a few bucks on this one, Uwe. Good find.

  • Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
    15y

    Uwe -- is this just for grins and giggles, or have you in fact purchased property in the U.S., and do you have the team in place to deal with something like this? I do actively invest in Ohio, so you aroused my curiosity.

  • Lender · Fort Pierce, FL · Member since 2009 · 825 posts · 486 votes
    15y

    Geesh ... at that price, you would think that the relatives of the current "tenants" would snag it.

  • Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
    15y

    @Jon, I look actual for an german investor ( not me^^ ) for some cheap rural houses and so I saw this yesterday.

    @David, not for grins or giggles, its really. Have no team but in some cases I found an handyman or contractor or appraiser. Steve from Cincinnati can tell you more, two years ago with an 8 unit in Cincy for only $5k.
    And I plan still more, of which more later.

    Ohio, Indiana, and New York state, maybe PA is a good place to invest, see this anytime.

    @Kevin, I try to go with only $2k for the house (land value?) :).

    -Uwe

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    15y
    Originally posted by Uwe S.:
    Seller want only $3k for it...

    What is the land worth?

    For $10K you can buy it and demo the house (worst-case). How much could you sell the empty lot for?

  • Residential Real Estate Agent · Mt. Pleasant, SC · Member since 2010 · 257 posts · 130 votes
    15y

    You could buy it for $3000, evict the tenants, and hire a cleanup crew to clean it out. Then wholesale it to a rehabber who might have been scared away by the original condition.

  • Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
    15y

    @J.Scott - as per county record value of land is $8,100, building only $4,500, taxes current and paid. No liens, no mortgages, propertie was sold 2008 for $13,000 but between family members.

    2009 tax was $900 per year now only $240.

    @Chris - I´m more the buy and hold guy, if its possible to hold is better for me I guess, if not, no problem!

    -Uwe

  • Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
    15y

    Status report: Seller has high bid with $4,000 and will wait until wednesday for last bids.

    -Uwe

  • Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
    15y

    It´s ended with $7,500 according to seller I don´t bid.

    -Uwe

  • Real Estate Investor · Bellingham, WA · Member since 2008 · 407 posts · 90 votes
    15y

    He's not making any money on the deal. It has expenses that he has to day. Minimal nuisance offer to take it over. There is a health hazard that could help remove tenants but in most states tenants have rights but these have not paid rent for years. Looking at acquiring the land as the house may not be salvageable.

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