Would you invest here?
Hey everyone, thank you for taking a few minutes to look over this post. I recently bought a tax certificate on a property, found out it is abandoned, and am working with a lawyer to take possession of it and get clear title. Assuming that works out, what are your thoughts on this project?
The house is on a street where there are several boarded up homes so there could be a lot of potential in this area. The neighborhood behind this street is a gated community. Just down the road a ways is the country club and a small college. Unfortunately, this street has been neglected for years and some local investors aren't interested in buying here.
The ARV is hard to pinpoint because there aren't many renovated properties on this street, and the surrounding neighborhoods aren't comparable. The sold properties range from $45,000-$68,000 over the last 12 months. Many of them are 400 square feet smaller than the subject property, though. While the subject is larger and will be in slightly better condition than all the other properties on the street, it has a boarded up house on the left and a vacant house on the right which hurts the ARV a bit. Because of this, I think the best bet is to rent the property as rents are decent even on this street. If things go well, I plan to try to purchase the houses surrounding this one and improve them as well.
What do you think? Would you invest here?
*This link comes directly from our calculators, based on information input by the member who posted.
Hi @D.J. Parten, if you have the capital to renovate the neighborhood, it could be worthwhile.
However, if you were to simply renovate this property, the rewards would be miniscule.
Hope this helps! I'm rooting for you!